Connecting public roads in one city to public roads in another is an example of a _____ problem where larger governments can help smaller governments.
A)negative externalities
B)economies of scale
C)prisoners' dilemma
D)coordination problem

Question

Quizplus · Accepted Answer

Connecting public roads in one city to public roads in another is a coordination problem because it requires the coordination and cooperation of both cities. Larger governments, such as state or federal, can help smaller governments by providing resources and expertise to coordinate the project. Negative externalities refer to the costs imposed on third parties from an economic activity, economies of scale refer to the cost advantages gained by producing on a larger scale, and prisoners' dilemma refers to a situation where both parties have incentive to act in their own self-interest, which leads to a suboptimal outcome for both parties. None of these options accurately describe the issue of connecting public roads between cities.

Connecting Public Roads in One City to Public Roads in Another