It Is Difficult for the Market Process to Provide Public

question 116

Multiple Choice

It is difficult for the market process to provide public goods because

• A) private firms generally cannot undertake large-scale projects.
• B) it will be difficult to get potential consumers to pay for such goods because there is not a direct link between payment for and receipt of the good.
• C) consumers do not really want public goods, even though such goods are best for them.
• D) individuals are generally made worse off by the production of public goods.

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Definitions:

Resource Productivity

Resource Productivity measures how efficiently resources (like raw materials or energy) are utilized to produce goods and services.

Organic Compounds

Chemical compounds that contain carbon, typically found in living things or derived from living organisms.

Carbon

Carbon is a chemical element with the symbol C and atomic number 6, essential to all known life, forming a vast number of compounds including carbon dioxide and organic materials.

Energy Quality

A measure of an energy source's ability to do useful work; high-quality energy can be converted to work with high efficiency.