A Market Is Unlikely to Provide an Efficient Quantity of Public

question 89

Multiple Choice

A market is unlikely to provide an efficient quantity of public goods because

• A) only the government has the vast resources necessary to produce public goods.
• B) the nature of public goods makes it difficult for producers to withhold them from nonpaying consumers.
• C) the technology involved in the production of public goods makes it difficult for private firms to produce them even though they could be produced efficiently.
• D) private production of public goods generally results in a large amount of profit, which is difficult for a firm to effectively pay out to shareholders.

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Definitions:

Social Aspects

The elements of life that involve interactions with others, including relationships, traditions, and community participation.

Diseases

Medical conditions characterized by an impairment of health, often caused by factors like infections, genetics, or environmental influences.

Social Institution

A complex of roles, norms, and values organized into a relatively stable form that contributes to social order by governing the behavior of people.

American Medical Association

A professional association of physicians and medical students in the United States aimed at promoting healthcare improvement, medical education, and ethical standards.