Using Figure 4

question 98

Multiple Choice

Using Figure 4.2, suppose point C represents the optimal mix of public and private goods for a society. The market mechanism is likely to result in a mix of output represented by point

• A) F because the market mechanism is inefficient.
• B) B because the market mechanism tends to overproduce public goods.
• C) C because the market mechanism is efficient.
• D) D because the market mechanism tends to underproduce public goods.

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Definitions:

Cognitive Dissonance

A psychological discomfort experienced when holding contradictory beliefs or ideas, prompting an individual to seek consistency.

Attitudes

The settled ways of thinking or feeling about someone or something, typically reflected in a person's behavior.

Behavior

The actions or reactions of an individual or group in response to external or internal stimuli.

Intentions

The plans or goals that individuals form to guide their actions, often predicting behavior in various contexts.