Public Provision

question 177

Multiple Choice

Public provision

• A) is the production of a good by the government by giving funds to private producers.
• B) lowers the marginal cost of producing the good.
• C) means the good is produced by a public authority that receives the most of its revenue from the government.
• D) Both answers A and B are correct.
• E) Both answers B and C are correct.

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Definitions:

Good

A material item or service that can be bought, sold, or traded to satisfy a want or need.

Opportunity Cost

The value of the next best alternative forgone as the result of making a decision.

Optimum

The most favorable condition or level at which the best possible outcome or maximum efficiency is achieved.

Sweater

A knitted garment typically covering the upper body, designed for warmth or fashion.