If the Benefits of a Public Good Exceed Its Costs

question 144

Multiple Choice

If the benefits of a public good exceed its costs:

• A) the market can still provide efficiently if the firm is a price setter.
• B) government agencies may either produce the good themselves or pay private firms to produce it.
• C) people really don't value the good.
• D) the free-rider notion does not apply.

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Definitions:

Lithium Carbonate

A chemical compound used primarily in the treatment of bipolar disorder, acting to stabilize mood and reduce the extremes of mania and depression.

Bipolar Disorder

A mental disorder marked by extreme mood swings, including emotional highs (mania or hypomania) and lows (depression).

Lithium Carbonate

A chemical compound used primarily in the treatment of bipolar disorder, acting to stabilize mood.

Obsessive-Compulsive Disorder

A mental disorder characterized by unwanted thoughts (obsessions) and repetitive behaviors (compulsions) that the sufferer feels driven to perform.