An Efficient Amount of a Public Good Is Unlikely to Be

question 80

Multiple Choice

An efficient amount of a public good is unlikely to be produced in a free market because

• A)of the existence of moral hazard.
• B)there is no way to prevent a person who is not willing to pay for the good from receiving benefits from the good.
• C)social benefits exceed social costs.
• D)of the high cost of producing the public good.
• E)of the existence of adverse selection.

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Definitions:

Hard Rock Café

A global chain of themed restaurants known for its collection of rock and roll memorabilia, dining services, and entertainment.

Ingredient Cost

The cost of raw materials used to produce a product or dish.

Management Process

The application of planning, organizing, staffing, leading, and controlling to the achievement of objectives.

Illiteracy

The inability to read and write, affecting an individual's ability to participate fully in society and the workforce.