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.

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Definitions:

Observable Behaviours

Actions or reactions of an individual, in a particular situation, that are visible and measurable.

Consciousness

The state or quality of awareness, or being aware of an external object or something within oneself.

John B. Watson

An American psychologist who established the psychological school of behaviorism.

Psychological Research

The systematic investigation of scientific theories and behaviors to understand or explain psychological phenomena.