An Important Difference Between the Demand for a Private Good

question 101

Multiple Choice

An important difference between the demand for a private good and the demand for a public good is that

• A)individuals reveal their preferences for a public good, but they do not have to reveal their preferences for a private good.
• B)the resources used to provide public goods are common resources or government owned; the resources used to produce private goods are all privately owned.
• C)individuals reveal their preferences for a private good, but they do not have to reveal their preferences for a public good.
• D)the demand for a private good produces consumption externalities; the demand for a public good produces production externalities.

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Definitions:

Newspaper

A printed publication, usually issued daily or weekly, containing news, articles, advertisements, and other items of general interest.

Internet

The internet is a global network of computers that provides a vast range of information and communication facilities, including access to websites and the transmission of email and data.

Media

Various means of communication that reach or influence people widely, including newspapers, television, radio, the Internet, and other digital platforms.

Freedom

The power or right to act, speak, or think as one wants without hindrance or restraint.