Suppose a Public Good That Is Worth $1 Billion Is

question 144

Multiple Choice

Suppose a public good that is worth $1 billion is not produced by the market, and so the government provides it, but at a cost of $3 billion. This attempt to correct a market failure has:

• A) been successful since the public good is now produced.
• B) given rise to the problem of free riders.
• C) resulted in a government failure since use of resources is now less efficient.
• D) resulted in an information asymmetry for the government.

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Definitions:

Contractility

The ability of muscle tissue to contract forcefully when stimulated.

Stimulation

The action of encouraging something to move, grow, or develop further.

Dyspnea

Difficulty or labored breathing, often described as a feeling of being short of breath.

Orthopneic

Pertaining to a position assumed by patients to ease breathing, often sitting up straight or leaning forward.