Why Will a Private Market Be Unable to Produce the Efficient

question 51

Multiple Choice

Why will a private market be unable to produce the efficient quantity of public goods?

• A) because the good's marginal cost is too low
• B) because the good is nonexcludable, so there is the free rider problem
• C) because the good is rival, so no one will want to pay the producer for it
• D) All of the above answers are correct.

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Definitions:

Slave Owners

Individuals who owned slaves, especially prevalent in historical contexts where slavery was legally and socially sanctioned, such as pre-Civil War United States.

James Madison

The fourth President of the United States (1809-1817), hailed as the "Father of the Constitution" for his pivotal role in drafting and promoting the U.S. Constitution and the Bill of Rights.

Constitutional Convention

The gathering that took place in 1787 in Philadelphia, where the United States Constitution was drafted to replace the Articles of Confederation and create a new structure of government.

National Government

A political organization having central governmental powers over a nation or state, responsible for administering and governing the country.