Some Public Goods Would Not Be Provided Without Government Intervention

question 161

Multiple Choice

Some public goods would not be provided without government intervention because:

• A) the marginal cost of the good exceeds an individual's marginal benefit.
• B) the marginal cost of the good is less than an individual's marginal benefit.
• C) the socially optimal price of the good would be zero (i.e., there is no chance of making a profit).
• D) the marginal cost of the good exceeds an individual's marginal benefit and the socially optimal price of the good would be zero (i.e., there is no chance of making a profit).

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Definitions:

Defective

Describing a product or good that fails to meet quality standards or does not function as intended.

Insufficient Funds

a situation where an account does not have enough money to cover a transaction, often leading to denied payments or penalties.

Handwritten Terms

Handwritten terms are provisions or conditions manually written in a contract or agreement, which can add specificity or clarity to the document's stipulations.

Undated

A document or item that does not carry a date indicating when it was produced or written.