When the Government Privatizes a Common Resource,it Does All of the Following

question 15

Multiple Choice

When the government privatizes a common resource,it does all of the following except:

• A) forces the owner to consider all the costs and benefits of their consumption choices.
• B) creates excludability.
• C) increases efficiency.
• D) increases undesirable side effects.

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Definitions:

Social Benefit

The total benefit to society from a particular action or policy, including both direct benefits to participants and any external benefits to others.

Fire Extinguishers

Devices designed to extinguish or control small fires, often in emergency situations.

Total Benefit

The sum of all the advantages or gains obtained from a certain action or investment.

Externalities

Economic side effects or consequences that affect someone other than the buyer or seller, can be positive or negative.