The Reason That Private Provision of a Public Good Often

question 4

Multiple Choice

The reason that private provision of a public good often leads to inefficiency is because

• A) private property rights are too costly to enforce.
• B) marginal private benefits are too costly to calculate.
• C) no one has the incentive to pay for the good.
• D) no one has an incentive to conserve the good.
• E) the tragedy of the commons occurs and too many public goods are provided.

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Definitions:

Intercompany Transfers

Transactions involving the transfer of goods, services, or funds between units, divisions, or subsidiaries within the same parent company or corporate group.

Investment Income

Income generated from the allocation of funds into interest-bearing or dividend-yielding assets.

Unallocated Positive

A term that is not widely recognized as standard in accounting or finance; it may refer to surplus income or assets not yet designated for a specific purpose but NO.

Goodwill

An intangible asset that arises when a buyer acquires an existing business, representing the value of the business's reputation, brand, and other unidentifiable assets.