A Major Reason Why Public Goods Are Not Supplied by the Market

question 5

Multiple Choice

A major reason why public goods are not supplied by the market is the:

• A) free-rider problem.
• B) existence of negative externalities.
• C) fact that no one is willing to pay for them.
• D) fact that public goods are rival.
• E) fact that no firm would be able to earn a profit by producing them.

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Definitions:

Direct Experience

A firsthand involvement or encounter with events or conditions, allowing for the acquisition of knowledge or skills through personal participation.

Organizational Citizenship Behaviors

Represent the voluntary actions of employees that contribute to the organizational well-being beyond the scope of their formal duties.

Affect

A term referring to the underlying experience of feeling, emotion, or mood.

Cognition

The mental action or process of acquiring knowledge and understanding through thought, experience, and the senses.