In the absence of government action, the private market would probably not provide as much police protection as is socially desirable because:
a. individuals are too poorly informed about the value of police protection
b. the private benefits are greater than the private costs of providing police protection.
c. it is difficult to prevent free riders from benefiting from some police protection services.
d. the use of police services by one person will significantly reduce the police protection available to others.
c
You might also like to view...
Which of the following statements is true?
A) Eurobanks are able to create money. B) Eurobanks accept deposits but not loans. C) Eurobanks are essentially intermediaries. D) Both A and C.
Open market purchase of government securities by the Fed increases the federal funds rate
Indicate whether the statement is true or false
Consumers face tradeoffs except at the point where the indifference curve is tangent to the budget line
a. True b. False Indicate whether the statement is true or false
A reduction in the marginal tax rate can cause potential output to increase by:
A) encouraging early entry into the labor market by reducing the incentive to earn advanced degrees. B) increasing after-tax wage rates and thus allowing workers to work fewer hours. C) increasing the incentive to invest more in education and earn advanced degrees. D) increasing government revenues and thus government expenditure.