Which of the Following Factors Weakens the Case for Private-Sector

question 195

Multiple Choice

Which of the following factors weakens the case for private-sector provision of goods and services relative to public-sector provision?

• A) constitutional rules
• B) the shortsightedness effect
• C) the special-interest effect
• D) public goods

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Definitions:

Short-run Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity supplied over a short period, holding some inputs fixed.

Elastic

Describes a situation where the quantity demanded or supplied of a good or service is sensitive to changes in price.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.

Price Taker

An entity that accepts market prices as given, without having influence to change the price by its own actions.