Which of the Following Statements Is Not Correct

question 204

Multiple Choice

Which of the following statements is not correct?

• A) Environmental degradation is an example of the Tragedy of the Commons.
• B) Cost-benefit analysis is an important tool that economists use to evaluate the benefits of providing a public good.
• C) Some goods, such as lighthouses, may be either private or public goods.
• D) The free-rider problem prevents governments from supplying public goods.

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Definitions:

Indifference Curve

A graph that shows a combination of two goods that give a consumer equal satisfaction and utility, thereby making the consumer indifferent between the two combinations.

Consumption Bundle

A specific mix of goods and services that a consumer chooses to consume, reflecting the consumer's preferences and budget constraints.

Horizontal Axis

The x-axis in a graph, generally representing the independent variable in data representation or analysis.

Perfect Complements

Goods that are consumed together in fixed proportions because their use together enhances their combined utility.