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:

Constitutionally Permissible

Refers to actions or laws that are allowed within the constraints set forth by a country's constitution.

Judicial Review

The power of courts to assess the constitutionality of legislative acts or governmental actions and to invalidate them if they conflict with a higher law.

Factual Determinations

The process of finding the facts of the case, often decided by the jury or judge in a court proceeding.

ALJ Decisions

Rulings or judgments made by Administrative Law Judges, who conduct trial-like hearings within administrative agencies.