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:

Suppliers

Businesses or individuals that provide goods or services to another entity typically in a supply chain context.

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Facilitating relationships involves creating and maintaining positive connections among business partners, customers, or employees to support organizational objectives.

Marketing Department

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Shareholders

Individuals or entities that own shares in a corporation, thereby having a claim to a portion of its assets and earnings.