User Charges Link Funds Produced to Particular Public Services-Individuals Pay

question 4

Multiple Choice

User charges link funds produced to particular public services-individuals pay only for the services they actually use. Why doesn't all government funding come from such freewill transactions and market exchange?

• A) User charges cannot provide a way to reflect demand for a service.
• B) Some services have non-appropriable characteristics.
• C) Some services are produced in systems showing economies of scale.
• D) None of the above.

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Definitions:

Food Production

The process of cultivating plants and raising livestock for the purpose of providing food for consumption.

Per Capita Incomes

The average income earned per person in a certain area in a specified year.

Agricultural Products

Goods derived from agriculture and farming activities, including crops, livestock, and other raw materials.

Farm Households

Families living and working on farms, often combining both their living quarters and business operations in the same place.