To Achieve the Efficient Level of National Defense

question 47

Multiple Choice

To achieve the efficient level of national defense,

• A) the government could provide national defense because it is a public good.
• B) private firms can provide national defense because it is a private good.
• C) the government can provide national defense because it is a private good.
• D) the government can provide national defense because it is a common resource.
• E) None of the above answers is correct.

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Definitions:

Fixed Supply

A situation where the quantity of a good available is constant and does not change with price.

Demand Determined

A characteristic of markets where the quantity of goods or services sold is primarily influenced by consumer demand.

Perfectly Inelastic

A market situation where the quantity demanded or supplied is completely unresponsive to price changes.

Demand Determined

A market characteristic where the quantity of products or services provided is primarily set by the level of demand.