Which of the Following Is True of Public Goods

question 66

Multiple Choice

Which of the following is true of public goods?

• A) They can only be supplied by the government.
• B) They will tend to be supplied efficiently by the private sector when markets are competitive.
• C) It is difficult to establish a one-to-one link between payment and receipt of such goods.
• D) From an efficiency standpoint, private markets will tend to supply an excessively large amount of public goods.

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Definitions:

Long-term Capital Gains

Profit from the sale of an asset held for more than one year, typically taxed at a lower rate than ordinary income.

Special Allocations

In partnership taxation, the distribution of income, gain, loss, deduction, or credit to partners in a way that does not directly correspond to their ownership percentage.

Partnership Agreement

A legal document that outlines the rights, responsibilities, and profit and loss distribution among partners in a business partnership.

Partnership Interest

An individual's or entity's ownership share in a partnership, reflecting the holder’s proportionate part of the partnership's profits or losses.