When People Cannot Be Excluded from Consuming a Good,even If

question 72

Multiple Choice

When people cannot be excluded from consuming a good,even if they have not paid for the good,competitive markets would

• A) produce more of the good than society needs.
• B) allocate more resources than the efficient amount to the production of the good.
• C) produce the good so that people could enjoy a "free ride."
• D) produce less than the efficient quantity.
• E) eliminate the deadweight loss.

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Definitions:

Indifference Curves

Graphical representations in microeconomics that illustrate different bundles of goods between which a consumer is indifferent, showing levels of utility.

Indifference Curves

Graphical representations in microeconomics showing different combinations of two goods that provide the same level of satisfaction to a consumer.

Slope

The measure of the steepness, incline, or grade of a linear graph, representing the ratio of the vertical change to the horizontal change between two points on the line.

Indifference Curves

Graphical representations in economics showing different combinations of two goods that provide the same level of satisfaction or utility to a consumer.