Which of the Following Statements About Public Goods Is Not

question 116

Multiple Choice

Which of the following statements about public goods is not true?

• A) They bestow collective benefits on members of society.
• B) They are non-excludable since those who do not pay for them cannot be excluded from enjoying them.
• C) They will be under supplied by the private sector.
• D) They are only produced by government agencies.

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Definitions:

Risk Neutral

A condition in which an individual or entity shows indifference between choices that have different levels of risk, focusing solely on potential outcomes regardless of uncertainty.

Expected Level

the anticipated quantity or value in a given context, often based on statistical analysis or previous observations.

Risk Aversion

A preference for options that offer more certainty and less potential for loss.

Insurance Policy

A contract between an individual or entity and an insurance company, outlining the terms under which insurance coverage is provided.