When Benefits Are Highly Concentrated, but Costs Are Diffused Across

question 174

Multiple Choice

When benefits are highly concentrated, but costs are diffused across a large number of people:

• A) the market tends to overproduce these goods.
• B) the market tends to underproduce these goods.
• C) the government tends to overproduce these goods.
• D) the government tends to underproduce these goods.

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Definitions:

Rancher

An individual responsible for the ownership or operation of a ranch, which is a property dedicated to breeding and raising animals like cattle or sheep, primarily for producing meat or wool.

Opportunity Cost

The price paid for not selecting the next preferable option when a choice is made.

Architectural Jobs

Employment positions focused on designing buildings and structures, ensuring they are functional, safe, and aesthetically pleasing.

Wage Rate

The fixed amount of money paid to an employee for work performed, typically expressed per hour or piece.