A market is unlikely to provide an efficient quantity of public goods because

a. only the government has the vast resources necessary to produce public goods.
b. the nature of public goods makes it difficult for producers to withhold them from nonpaying consumers.
c. the technology involved in the production of public goods makes it difficult for private firms to produce them even though they could be produced efficiently.
d. private production of public goods generally results in a large amount of profit, which is difficult for a firm to effectively pay out to shareholders.


B

Economics

You might also like to view...

Refer to Table 20.1. George is a single taxpayer with an income of $65,000. What is George's average tax rate?

A) 19.00% B) 22.68% C) 23.61% D) 27%

Economics

Answer the next question based on the following consolidated balance sheet for the commercial banking system. Assume the required reserve ratio is 30 percent. All figures are in millions of dollars.AssetsLiabilities & Net WorthReserves$200  Checkable Deposits$600Loans100  Stock Shares700Securities500 Property500?Refer to the above data. The excess reserves in this commercial banking system are:

A. $10 million. B. $30 million. C. $20 million. D. $180 million.

Economics

In the above table, if the marginal revenue product is $26, how many workers will the profit maximizing monopsonist hire and what wage will they pay each worker?

A. 5; $16 B. 6; $30 C. 4; $16 D. 5; $18

Economics

In Thailand in the late 1990s, there was pressure for the value of the baht to decline as foreign investors began to

A) increase their investments in Thailand and exchanged their dollars for baht. B) increase their investments in Thailand and exchanged their baht for dollars. C) sell off investments they had made in Thailand and traded in their baht for dollars. D) sell off investments they had made in Thailand and traded in their dollars for baht.

Economics