When the government provides a public good by taxing citizens and using tax money to provide the good:
A. the result is efficient if the total benefits of the public good is greater than the cost of providing it.
B. the result is inefficient because the government is an inefficient provider of goods and services.
C. the result is inefficient because if it were efficient the good would have been provided in a free market.
D. the result is efficient only if voters specifically agreed to provision of that good.
Answer: A
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Which of the following is the best example of a nonrenewable resource?
a. Forests. b. Oil. c. Clean air. d. Fish in the ocean.
Import quotas and tariffs produce similar results. Which of the following is not one of those results?
a. The domestic price of the good increases. b. Consumer surplus of domestic consumers increases. c. Producer surplus of domestic producers increases. d. A deadweight loss is experienced by the domestic country.
Reserve ratio is 10% and a bank receive a new checkable deposit 1,000
What will be an ideal response?
Ingrid runs a near monopoly. She figures if the company sells its products more cheaply than anyone else can manufacture them now, competitors will go out of business, and then the company can charge prices ten times higher than the current price. This is an example of ______.
a. equilibrium pricing b. competitive pricing c. predatory pricing d. price discrimination