Due to the Existence of External Benefits Associated with Public

question 36

Multiple Choice

Due to the existence of external benefits associated with public goods,

• A) private markets will lead to an efficient allocation of resources.
• B) government intervention can possibly improve on private market outcomes.
• C) private markets will correct for the underproduction of the good.
• D) the free-rider problem is eliminated.

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Definitions:

Firewood

Fuel consisting of logs, sticks, or wood chips that are burned for warmth or cooking.

Storm

A violent atmospheric disturbance characterized by strong winds, rain, thunder, lightning, or snow.

Clouds

Visible masses of water droplets or ice crystals suspended in the atmosphere above the surface of a planetary body.

Explanation

A statement or account that makes something clear by describing the relevant structure or operation, or circumstances.