Which of the Following Is True

question 83

Multiple Choice

Which of the following is true?

• A) Consumption of a public good by one individual reduces the availability of the good for others.
• B) It is extremely difficult to limit the benefits of a public good to only the people who pay for it.
• C) Public goods are free to a society when they are produced by the government.
• D) From an efficiency standpoint, a market will generally supply too much of a public good.

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Definitions:

Consequential Damages

Refers to losses or injuries that do not flow directly and immediately from an act, but result indirectly from the act.

Breach

The act of violating a law, promise, agreement, or barrier.

Special Circumstances

Situations that are exceptional, and may require different treatment or exceptions to standard rules or policies.

Incidental Beneficiary

A third party for whose benefit a contract was not made but who would substantially benefit if the agreement were performed according to its terms and conditions.