A Market Is Unlikely to Provide an Efficient Quantity of Public

question 89

Multiple Choice

A market is unlikely to provide an efficient quantity of public goods because

• A) only the government has the vast resources necessary to produce public goods.
• B) the nature of public goods makes it difficult for producers to withhold them from nonpaying consumers.
• C) the technology involved in the production of public goods makes it difficult for private firms to produce them even though they could be produced efficiently.
• D) private production of public goods generally results in a large amount of profit, which is difficult for a firm to effectively pay out to shareholders.

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Definitions:

Shield Volcanoes

Broad, gently sloping volcanoes formed by the accumulation of highly fluid lava flows, resembling a warrior's shield.

Basaltic Magma

A type of magma that is low in silica and high in iron and magnesium, characteristic of mid-ocean ridges and volcanic islands.

Low Slopes

Areas of land where the gradient or incline is slight, typically leading to the gentle flow of rivers or surface runoff.

Broad, Gentle

Describes wide areas with a mild gradient or slope, often used in geographical and geological contexts.