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Using Figure 4

Question 21

Multiple Choice

Using Figure 4.2, suppose point C represents the optimal mix of public and private goods for a society.The market mechanism is likely to result in a mix of output represented by point A) F because the market mechanism is inefficient. B) B because the market mechanism tends to overproduce public goods. C) C because the market mechanism is efficient. D) D because the market mechanism tends to underproduce public goods. Using Figure 4.2, suppose point C represents the optimal mix of public and private goods for a society.The market mechanism is likely to result in a mix of output represented by point


A) F because the market mechanism is inefficient.
B) B because the market mechanism tends to overproduce public goods.
C) C because the market mechanism is efficient.
D) D because the market mechanism tends to underproduce public goods.

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