Public goods are unlikely to be provided by the private sector because
A. the exclusion principle does not apply to public goods.
B. the production of the good creates negative externalities.
C. no one can be excluded from the consumption of the good.
D. the consumption of the good creates negative externalities.
Answer: C
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Wages that are above the wage that workers would accept, where the premium is paid to increase worker productivity, are referred to as:
A) wage floors. B) wage ceilings. C) efficiency wages. D) productivity wages.
Which of the following is a tool used for protectionism?
A) Service tax B) Bank rate C) Tariffs D) Open market operations
If a firm produces nothing, then its:
A. variable costs equal zero. B. fixed costs equal zero. C. total costs equal zero. D. All of these are true.
An example of an uncontrollable resource that contributes to diseconomies of scale for a movie theater is
a. concession stand staff b. public roads congested with traffic c. volume discounts from movie distributors d. a single lobby in the theater e. bigger, more noticeable newspaper ads