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Public Goods

Question 2

Multiple Choice

Public goods:


A) are likely to be underprovided by the private sector due to the free rider problem.
B) are likely to be overprovided by the private sector due to the free rider problem.
C) can only be provided by the public sector,while private goods can only be provided by the private sector.
D) cannot be provided by the private sector because they are rival in consumption.

Correct Answer:

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