In the absence of government
A) public goods are likely to be overprovided.
B) market failure is less likely to occur.
C) public goods are likely to be underprovided.
D) the free-rider problem is more likely to occur.
Answer: C
You might also like to view...
Most economists believe that the market __________ produce nonexcludable public goods because of the __________.
A. will; monetary incentive they have to produce them B. will not; externality problem C. will not; free rider problem D. will; market shortage that often accompanies the production of public goods. E. none of the above
Which of the following is the correct formula for computing GDP?
a. GDP = consumption + private investment + government spending + exports - imports b. GDP = consumption + public investment + government spending + exports - imports c. GDP = consumption + private investment + government spending - exports - imports d. GDP = consumption + private investment + government spending + transfers e. GDP = consumption + private investment + tax revenue + transfers
The term costs of adjustment refers to the states' intentions to _______________ , which is common in the politics of international finance.
Fill in the blank(s) with the appropriate word(s).
Which of the following is a driving force underlying economic growth?
What will be an ideal response?