The Efficient Provision of Public Goods Is Difficult Because

question 22

Multiple Choice

The efficient provision of public goods is difficult because:

• A)governments can't directly observe users' willingness to pay for the good
• B)some users may exaggerate the benefits in a questionnaire
• C)information on costs is poor because prices aren't directly observed
• D)all of the above

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Definitions:

Inhibition

The process of restraining or suppressing a response, action, or biological process.

Excitation

The process of stimulating activity in an organism or in any of its parts, often leading to increased activity or responsiveness.

Synapses

The junctions between neurons through which they communicate with each other using chemical or electrical signals.

Presynaptic Neuron

The neuron that sends a signal across the synapse to another neuron.