The government sometimes provides public goods because
a. private markets are incapable of producing public goods.
b. free-riders make it difficult for private markets to supply the efficient quantity.
c. markets are always better off with some government oversight.
d. external benefits will accrue to private producers.
B
You might also like to view...
Which of the following statements is true?
A) There always exists some amount of unemployment in an economy. B) The unemployment in an economy normally increases at times of expansion and decreases at times of contraction. C) In almost every economy, each job opening is instantly filled by a qualified worker. D) The unemployment rate in an economy is constant over the long run.
The Roomba 570 is a robotic vacuum cleaner made and sold by iRobot. It can vacuum 4 rooms on a single battery charge and it costs $2 worth of electricity to charge the Roomba
Lynn is a house cleaner and can vacuum 4 rooms in 1 hour with a traditional vacuum. Suppose you want the 4 rooms in your house vacuumed once a week for one year. Ignoring the cost of any electricity Lynn uses, which method is economically efficient if Lynn charges $20 per hour? $30 per hour? A) Roomba if Lynn charges $20 per hour and Lynn if she charges $30 per hour B) Lynn if she charges $20 or $30 per hour C) Roomba if Lynn charges $20 or $30 per hour D) Lynn if she charges $20 per hour and Roomba if Lynn charges $30 per hour
In order to study how changing price affects consumer decisions, we must assume all other factors, such as income and the prices of other goods are constant. This assumption is best know as
A) rationality. B) ceteris paribus. C) normative economics. D) behavioral economics.
Each firm in the egg industry (competitive) produces 15 million eggs per year. Each egg has an average cost of $0.02 and they sell an egg for $0.06 . The marginal cost of a string is
a. $0.02 b. $0.06 c. $0.04 d. not enough information provided.