If Good X Is Available Free of Charge, Then

question 392

Multiple Choice

If good x is available free of charge, then

• A)good x must be provided by nature.
• B)good x must be provided by the government.
• C)the private market cannot ensure an efficient allocation of resources in the market for good x.
• D)government policy is incapable of increasing total surplus in the market for good x.

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Definitions:

Probability

A measure of the likelihood of a specific event or outcome occurring.

Wins

Achievements or successes in a competition or challenge.

Income-Utility Curves

Graphical representations showing how changes in income affect an individual's level of satisfaction or utility, holding other factors constant.

Risk Preferences

Denote an individual's or entity's tolerance for risk, influencing decision-making in uncertain situations.