Private Producers Have No Incentive to Provide Public Goods Because

question 175

Multiple Choice

Private producers have no incentive to provide public goods because

• A)the government subsidy granted is usually insufficient to enable private producers to make a profit.
• B)production of huge quantities of public goods entails huge fixed costs.
• C)they cannot avoid the tragedy of the commons.
• D)once produced, it will not be possible to exclude those who do not pay for the good.

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Definitions:

Political Grounds

Reasons or bases related to government, policy, or political processes, often cited in decisions or actions.

Nonjudicial Qualifications

Criteria or attributes considered for a position or role that do not pertain to legal or court-related expertise.

Ethical Rules

Guidelines or principles designed to govern conduct in a specific domain, ensuring actions abide by moral standards.

Witness Stand

A designated space in a courtroom where a witness gives their testimony during a trial.