Why Would It Be Inefficient for the Government to Charge

question 38

Multiple Choice

Why would it be inefficient for the government to charge a price for consuming a public good such as national defence?

• A)The price cannot be set to cover all defence costs.
• B)No one will be willing to pay to consume any national defence.
• C)Too little national defence will be provided.
• D)The marginal cost of providing national defence is zero.
• E)Too much defence will be provided.

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Definitions:

Skills

Are the abilities and knowledge that enable an individual to perform specific tasks effectively.

Behavior

Pertains to the actions or reactions of an individual or a group in response to external or internal stimuli, encompassing physical movements and psychological processes.

Desirable Social Qualities

The traits or characteristics that are generally appreciated and sought after in social interactions and contexts, such as kindness, empathy, and respectfulness.

LMX Theory

Stands for Leader-Member Exchange Theory, suggesting that leaders develop unique one-to-one relationships with each of the people reporting to them.