The market system does not produce public goods because
A. there is no need or demand for such goods.
B. public enterprises can produce such goods at lower cost than can private enterprises.
C. their production seriously distorts the distribution of income.
D. private firms cannot stop consumers who are unwilling to pay for such goods from benefiting from them.
Answer: D
You might also like to view...
A decrease in the equilibrium price for a product will result
A) when there is a decrease in demand and a decrease in the number of firms producing the product. B) when there is an increase in supply and a decrease in demand for the product. C) when the quantity demanded for the product exceeds the quantity supplied. D) when there is a decrease in supply and a decrease in demand for the product.
If the nominal rate of interest is 6.5% and the inflation rate is 3.0%, what is the real rate of interest?
A) -9.5% B) -3.5% C) 1.5% D) 3.5% E) 9.5%
A $10 million open market sale will decrease the monetary base by
A) $10 million. B) $10 million times the money multiplier. C) $10 million divided by the money multiplier. D) an amount between $0 and $10 million, depending on the fraction of the purchase the public wishes to hold as currency.
The consumer is in equilibrium when
A) MRT = MRS. B) Px/Py = MUx/MUy C) the budget line is tangent to the indifference curve at the bundle chosen. D) All of the above.