An Example of a Market Failure Associated with the Provision

question 176

Multiple Choice

An example of a market failure associated with the provision of public good in the private market is:

• A)free-riders pay too much for the good, so it is undersupplied
• B)free-riders don't pay for the good, so it is undersupplied
• C)free-riders pay too much for the good, so it is oversupplied
• D)free-riders don't pay for the good, so it is oversupplied

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Definitions:

Contingency Management

A behavioral therapy approach that rewards individuals for demonstrating desired behaviors or achieving specific goals.

Nondepressive Activities

Activities undertaken to promote psychological well-being or alleviate symptoms of depression, focusing on lifting mood and increasing engagement with life.

Providing Sympathy

The act of showing understanding and compassion towards another person’s suffering or hardships.

Irrational Thoughts

Thoughts that are not based on reason or logic, and often stem from misconceptions, fears, or misunderstandings.