Why Do Market Failures Arise in Case of Public Goods

question 47

Multiple Choice

Why do market failures arise in case of public goods?

• A)The quantity produced is much more than is actually required by the people.
• B)The quality of these goods are not good enough.
• C)The quantity produced is too less from the society's point of view.
• D)The government wastes a lot of resources for producing a public good.
• E)The users of such goods are required to pay a high price for these goods.

---

Definitions:

Human Organism

A living being that has human biological structures and systems that function interdependently.

Teratogen

A substance or element that induces abnormalities in a developing embryo or fetus.

Fetal Alcohol Syndrome

A condition resulting from alcohol exposure during the mother's pregnancy, causing brain damage and growth problems in the child.

Prenatal Stress

Describes stress experienced by a pregnant individual, which can affect fetal development and have long-term impacts on the child's health.