An Efficient Amount of a Public Good Is Unlikely to Be

question 36

Multiple Choice

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

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

---

Definitions:

Treatment Groups

Groups formed to provide therapeutic interventions or support for individuals dealing with specific psychological or physical conditions.

Interpersonal Interactions

The exchanges and communications between individuals, affecting their relationships and social dynamics.

Class Exercises

Structured physical or mental activities carried out in an educational setting with the aim of enhancing learning and understanding.

Emotional Needs

Fundamental feelings that one seeks to fulfill for personal well-being, such as love, acceptance, and appreciation.