Public Goods Are Desired Because

question 119

Multiple Choice

Public goods are desired because

• A) people want and value them but the private sector will not make them available.
• B) we want the government to spend our tax dollars.
• C) they came in small units.
• D) they make supply equal to demand for private goods.

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Definitions:

Money Income

Money income is the total income received by a household or individual in the form of currency or in transactions, excluding non-monetary benefits.

Budget Line

A graphical representation showing the combination of two goods that a consumer can purchase with a given income, at specified prices.

Price

The total money calculated, demanded, or paid in exchange for something.