Why Might It Be Economically Efficient to Offer Access to an Uncongested

question 40

Multiple Choice

Why might it be economically efficient to offer access to an uncongested art gallery or museum at a price of zero?

• A)because they are non-rivalrous and non-excludable and therefore should be provided at a price of zero
• B)because the marginal benefit received by the visitor is zero,and marginal benefits and marginal cost should be equal
• C)because the marginal cost of providing access to one more visitor is zero,while the visitor has a positive marginal benefit
• D)because it is good for society if more people visit art galleries and museums
• E)because they are public goods,which would not be provided by the free market

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Definitions:

Exhaustive

Thorough and comprehensive in approach or scope.

Deficit Spending

The practice of a government spending more money than it receives in revenue, typically funded through borrowing.

Borrowed Funds

Money obtained from external sources, such as banks or financial institutions, to be repaid over time with interest.

Transfer Payments

Payments made by the government to individuals or groups without expecting a good or service in return, often aimed at redistributing income, such as social security benefits and subsidies.