A public good will:
a. be efficiently provided by the free market as long as its total benefits exceed its total costs.
b. be efficiently provided by the free market as long as its marginal benefits exceed its marginal costs.
c. be provided in less than efficient quantities by the free market.
d. be provided in efficient quantities by voluntary contributions.
e. not be provided by the government.
c
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Which of the following is NOT a precondition for price discrimination?
A) The product cannot be resold to another customer. B) The price elasticities of demand are different for each group of consumers. C) The product is a durable good. D) The seller must have some market power.
Which of the following will shift the consumption function upward?
a. A decrease in stock prices b. An increase in stock prices c. A higher price level d. A lower disposable income e. A higher disposable income
A decrease in supply will cause the smallest increase in price when
a. both supply and demand are inelastic. b. demand is elastic and supply is inelastic. c. both supply and demand are elastic. d. demand is inelastic and supply is elastic.
If a U.S. shirt maker purchases cotton from Egypt, U.S. net exports
a. increase, and U.S. net capital outflow increases. b. increase, and U.S. net capital outflow decreases. c. decrease, and U.S. net capital outflow increases. d. decrease, and U.S. net capital outflow decreases.