A Public Good Will

question 98

Multiple Choice

A public good will:

• A) be efficiently provided by the free market as long as its total benefits exceed its total costs.
• B) be efficiently provided by the free market as long as its marginal benefits exceed its marginal costs.
• C) be provided in less than efficient quantities by the free market.
• D) be provided in efficient quantities by voluntary contributions.
• E) not be provided by the government.

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Definitions:

Self-interest

Acting in a way that is most beneficial for oneself.

Private Property

The right of private persons and firms to obtain, own, control, employ, dispose of, and bequeath land, capital, and other property.

Economically Most Efficient

The state where resources are allocated in a way that maximizes the production of goods and services at the lowest cost.

Labor and Capital

The primary factors of production, where labor refers to human work effort and capital to tools, equipment, and buildings used in production.