How will the market demand curve for a public good differ from the market demand curve for a private good?
Please provide the best answer for the statement.
The demand curve for the private good will be an accurate reflection of what people are willing to pay for a quantity of the good. In contrast, the demand curve for a public good will understate the true preferences of citizens. The free rider problem with a public good means that people who received the benefits of a public good will not always have to pay for the good since once it is provided for one person it is available to all. Thus, some citizens may not be willing to voluntarily pay for the public good, and as a result, people’s true preferences for a public good will be understated or even nonexistent even when the collective benefits outweigh the relevant costs.
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Refer to Figure 19-12. The graph above, depicts supply and demand for U.S. dollars during a trading day. At a fixed exchange rate of 0.30 pounds per dollar, the dollar is ________ versus the pound
A ________ of the dollar would correct the fundamental disequilibrium that exists in this market. A) overvalued; revaluation B) overvalued; devaluation C) undervalued; devaluation D) undervalued; revaluation
Identify the incorrect statement about the U.S. federal deficit. a. The U.S. is now the world's leading creditor
b. The U.S. borrows huge sums from abroad. c. Some critics blame U.S. fiscal policy as reflected in the large federal deficits for the switch of the U.S. from creditor to debtor nation. d. Japan and China are big buyers of U.S. Treasury securities. e. The federal budget, on an average, had a deficit of 3.0 percent relative to GDP.
In which of the following cases can we be certain that a natural resource has become scarcer?
a. both the demand for the resource and the supply of the resource have increased. b. both the demand for the resource and the supply of the resource have decreased. c. the demand for the resource has increased and the supply has decreased. d. the demand for the resource has decreased and the supply has increased.
Cap-and-trade programs create a market for the right to pollute.
Answer the following statement true (T) or false (F)