When Goods Are Produced Privately, but the Cost of Their

question 151

Multiple Choice

When goods are produced privately, but the cost of their purchase is paid for by the taxpayer or some other third party,

• A) consumers have a strong incentive to search out those firms offering them the best deal.
• B) private producers of such goods will have little incentive to control costs and provide them at low prices.
• C) goods and services will only be supplied if consumers are willing to pay an amount sufficient to cover their production costs.
• D) the invisible hand will direct consumers and producers toward an efficient level of output.

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Definitions:

Proposals

Detailed plans or suggestions put forth for consideration or discussion, particularly in a business or professional context.

Secondary Research

The process of gathering existing data from previously published sources, such as books, articles, databases, and reports.

Primary Research

Original research conducted to collect data firsthand, rather than using existing sources, to address a specific research question or hypothesis.

Specified Core Customers

The particular segment of customers identified as the primary target audience for a business's products or services.