The Efficient Quantity of a Public Good Can't Be Produced

question 72

Multiple Choice

The efficient quantity of a public good can't be produced by private firms because

• A) only the government has the necessary resources.
• B) it is impossible to determine the efficient amount.
• C) consumers have an incentive to free ride and not pay for their share of the good.
• D) private firms aren't large enough.
• E) the price would be too high if private firms produced the goods.

---

Definitions:

Wash Sale Rules

IRS regulations that disallow the claim of a capital loss for tax purposes if a substantially identical security is purchased within 30 days before or after the sale.

Loss Disallowed

A financial loss that cannot be deducted from taxable income as per tax regulations, often due to specific restrictions or limitations.

Personal Residence

The primary dwelling in which a person lives, often eligible for certain tax benefits, like the deduction of mortgage interest and property taxes.

Gain Recognize

Gain Recognize refers to the process of reporting the profit earned from the sale of an asset for tax purposes.