Public Goods Are NOT Sold in Efficient Quantities in the Marketplace

question 53

Multiple Choice

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

• A) once supplied to a buyer, they can be 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:

Bureaucracies

are complex organizational structures designed to manage and administer the policies, rules, and regulations of larger institutions or governments through a hierarchical system of authority.

Authority Structures

Refer to the systems and frameworks through which power and authority are organized, distributed, and executed within a society or organization.

Democratic Leadership

Offers more guidance than the laissez-faire variety but less control than the authoritarian type. Democratic leaders try to include all group members in the decision-making process, taking the best ideas from the group and molding them into a strategy with which all can identify. Outside of crisis situations, democratic leadership is usually the most effective leadership style.

Group Loyalty

The sense of commitment, support, or allegiance individuals feel towards a specific collective or group to which they belong.