Which of the Following Is an Example of a Private

question 48

Multiple Choice

Which of the following is an example of a private good?

• A)traffic lights
• B)mountain bike trails in a national forest
• C)a fast-food cheeseburger
• D)cell phone service

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Definitions:

Subsidizing Production

The act of providing financial support to companies or industries to reduce the cost of producing goods or services, often to encourage production or lower prices for consumers.

External Costs

Costs that affect parties who are not directly involved in the production or consumption of a good or service, often leading to market failures.

Underproduce

The act of producing less than is demanded or expected, often leading to shortages and increased prices.

Overprice

The act of charging a price for a product or service that is higher than what is considered fair or reasonable.