Public Goods Represent a Market Failure Because

question 40

Multiple Choice

Public goods represent a market failure because

• A) they are provided by firms with market power.
• B) positive externalities are created through their production.
• C) by their very nature they are nonexcludable and nonrival, which makes it difficult for the private sector to supply them profitably.
• D) there is incomplete information regarding their quality.

---

Definitions:

Rejection Region

The range of values in hypothesis testing outside of which the null hypothesis is rejected in favor of the alternative hypothesis.

Categorical Variables

Categorical variables are qualitative variables that can take on different categories, but which do not have a natural order or ranking.

Degrees Of Freedom

The number of independent values or quantities that can vary in the analysis without violating any constraints.

Type I Error

The incorrect rejection of a true null hypothesis, also known as a "false positive."