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The main problem with public goods is that:
a. They lead to depletion of resources such as stock of fish.
b. Typically, the private sector alone finds no incentive to provide them.
c. If provided, they generate economic inefficiency.
d. Exist in theory, but not in the real world.
Step by step
Solved in 3 steps
- What is a market-failure rationale for the government investing in transportation and infrastructure, for example roads, highways, bridges and tunnels? a. Government policy acts to correct for the under-provision of private goods by the private, unregulated market. b. Government policy acts to correct for the over-provision of private goods by the private, unregulated market. c. Government policy acts to correct for the over-provision of public goods by the private, unregulated market. d. Government policy acts to correct for the under-provision of public goods by the private, unregulated market.According to free-market economists: a. when capital goods are allocated by the market, they will go to the firms who can most profitably use them. b. when a surplus or a shortage occurs, changes in prices rapidly send information to firms and households for them to act upon. c. because of the pervasiveness of externalities, there is a role for government regulation. d. All of the above are correct. e. Both a and b are correct. f. Both a and c are correct. g. Both b and c are correct. h. None of the above are correctThe south African government develops targets that pertain to healthcare and education. Which of the following statements explains why government provides these two goods? A. The benefit to society of healthcare and education is extremely low. B. The benefits that society receives from health care and education exceed those that accrue to an individual user. C . The government spends money on health care and education because they are public goods D. Health care and education only produce negative externalities.
- Which of the following goods would be considered a pure public good? Select one: O O O CO a. National defense b. Cable TV c. Toll road d. Sports stadiumWhich of the following is NOT one of the characteristics of a public good? A. It must be non-rival in consumption. B. It must be nonexcludable. C. It must be provided by the government. D. All of the above are characteristic of public goods.1. Public goods have all of the following characteristics EXCEPT: a.one person's consumption does not affect another person's consumption. b.tax dollars are used for the provision of public goods. c.firms find public goods profitable to produce because people value them. d.a free-rider problem develops with public goods. e.those who do not pay cannot be excluded from consuming the good.
- What are the two essential characteristics of public goods? Choose the two characteristics that apply. A. Individuals pay for public goods as they are used. B. Some people receive greater opportunities to use public goods. C. Public goods can be used by more and more people at no additional opportunity cost and without depriving others of any of the goods or services. D. Collection systems are difficult to institute for public goods because of how people use them.Q35 Which of the following phenomena is NOT an example of market failure? a. A positive externality. b. Diminishing marginal returns. c. Moral hazard. d. Asymmetric information. e. Public goods.Spillovers or externalities: a. have been legislated out of existence. b. relate to both costs and benefits. c. None of the Above d. relate to benefits only. e. relate to costs only.
- Define and give an example of a common resource. Without government intervention, will people use this good too much or too little? Explain.Time left 0:2 Private markets will not provide the efficient quantity of a public good because Select one: Oa. All of the above answers are correct b. one person's consumption does not limit another person's consumption c. it is hard to prevent a person from receiving the benefits of a public good even if the person did not pay for the good d. of the free-rider problemRadio (at least terrestrial radio) can be considered a public good. How can such a radio station cover its costs without government support? A. The radio station can charge listeners a fee every time they tune to the station. B.The radio station can sell advertising. C. The radio station can patent its radio broadcasts. D.There is no way. The radio station must receive government support in order to function.
