Fire protection and police protection can be produced more efficiently by the private sector than by the public sector.
Fire and police protection are public goods; therefore,the private sector will underproduce these services.
Correct Answer:
Verified
Q129: Markets will underproduce goods that yield external
Q130: Social demand equals market demand plus externalities
Q131: Transfer payments are payments to individuals for
Q132: State governments receive half of their tax
Q133: If your neighbors remove the weeds in
Q135: Micro and macro failures of the marketplace
Q136: The market tends to underproduce public goods.
The
Q137: The federal personal income tax system is
Q138: Social demand equals market demand minus externalities
Q139: The free-rider dilemma occurs in the provision
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents