The Quantity of a Public Good Supplied by a Private

question 78

Multiple Choice

The quantity of a public good supplied by a private market is

• A) smaller than the efficient quantity.
• B) equal to the efficient quantity.
• C) the quantity that maximises total public benefit.
• D) larger than the efficient quantity.

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Definitions:

Market Rate

The prevailing interest rate available in the marketplace on investments, loans, or savings.

Journal Entry

The recording of financial transactions in an accounting system, where each transaction is entered with equal debits and credits affecting at least two accounts.

Contractual Interest Rate

The agreed-upon rate of interest to be paid on bonds or loans as specified in the contract.

Market Interest Rate

The prevailing rate of interest on loans and debt securities, reflecting the cost of borrowing in the market.