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Government May Not Be Able to Determine the Optimal Amount

Question 16

Multiple Choice

Government may not be able to determine the optimal amount of a public good because:


A) it is easier to determine the costs and benefits associated with public goods than those associated with private goods.
B) it is easier to determine the costs and benefits associated with private goods than those associated with public goods.
C) the quantity of public goods provided by private parties is zero.
D) there is no optimal mix of public and private goods.

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