Left to their own,private markets tend to
A)under-allocate resources to public goods.
B)allocate the economically efficient amount of resources to public goods.
C)over-allocate resources to public goods.

Question

Quizplus · Accepted Answer

Private markets tend to prioritize goods and services that generate profits, and public goods (such as parks, public transportation, and education) are often not profitable. As a result, private markets may under-allocate resources to public goods, leading to a suboptimal level of provision.

Left to Their Own,private Markets Tend to