Which of the Following Statements About Public Goods Is True

question 54

Multiple Choice

Which of the following statements about public goods is true?

• A) They respond to market signals.
• B) The firms producing them must be listed on a public stock exchange.
• C) They are unlikely to be provided by private, profit- seeking firms.
• D) They are essentially negative externalities.
• E) They cannot be publicly provided.

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Definitions:

Hierarchical System

A hierarchical system is an organizational structure where entities are ranked according to levels of authority, from highest to lowest.

Bureaucracy

An organizational structure characterized by standardized procedures, hierarchical divisions, and a clear set of rules and regulations to manage large organizations.

Network Structures

The arrangement and interconnection of elements within a network, defining how they communicate and cooperate.

Overheads

The ongoing expenses of operating a business that are not directly attributed to creating a product or service, such as rent, utilities, and administrative costs.