Which of the Following Is a Valid Reason for Government

question 56

Multiple Choice

Which of the following is a valid reason for government provision rather than market provision of certain economic goods and services?

• A) When the government provides economic goods, they are free; costs are only incurred when such goods are provided by private firms.
• B) Voters tend to be better informed than market consumers.
• C) Decision makers in the market are motivated by self-interest, whereas, political decision makers are primarily motivated by the desire to help others.
• D) Public goods tend to be undersupplied through the market since it is difficult for potential suppliers to withhold such goods from nonpaying consumers, while the government can use taxes to overcome this problem.

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Definitions:

Marketing Communication

The process and methods used by organizations to convey promotional messages about their products or services to their target audience.

Commercial

A promotional advertisement, typically broadcast on television or radio, intended to inform or persuade an audience about a product or service.

Value Proposition

The unique value that a product or service provides to its customers and how it is better than and different from those of competitors.

Product

Anything that is of value to a consumer and can be offered through a voluntary marketing exchange.