Public Goods Are Not Sold in Efficient Quantities in the Marketplace

question 206

Multiple Choice

Public goods are not sold in efficient quantities in the marketplace because:

• A)once supplied to a buyer, they are made available at no cost to someone else.
• B)the more one person has, the less another person has.
• C)they are usually so costly that only the wealthy can afford them.
• D)they are usually very poor quality goods.

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Definitions:

Expectancy

The degree to which individuals believe that their effort will lead to effective performance and, consequently, a desired outcome.

Effort

The expenditure of physical or mental energy toward the accomplishment of a task or goal.

Valence

In psychology, refers to the intrinsic attractiveness or aversiveness of an event, object, or situation.

Range

denotes the extent or scope of something, often referring to the difference between the highest and lowest values in a set of data or the variety within a category.