Why Are the Public Goods Not Excludable

question 72

Multiple Choice

Why are the public goods not excludable

• A)They may be socially desirable but not privately profitable.
• B)They may be socially desirable and therefore will be provided by both the government and as a private good.
• C)They may be socially desirable and have a lower price so more consumers will be able to afford them.
• D)They may be socially desirable but are still generally taxed by the government.

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Definitions:

Inverse Relationship

Describes a relationship between two variables in which one variable increases as the other decreases, and vice versa.

Interaction Effect

effect of one independent variable on the dependent variable at the different levels of another independent variable.

Main Effect

Effect of an independent variable on the dependent variable within a factorial research design.

Simple Effect

Effect of one independent variable at one of the levels of another independent variable.