Why Are Goods That Are Non-Rivalrous and Excludable (Such as an Uncrowded

question 101

Multiple Choice

Why are goods that are non-rivalrous and excludable (such as an uncrowded library or art gallery) often provided by the government?

• A)Because when these goods are used beyond capacity,they would not be provided by private firms.
• B)The marginal cost to society of providing access to one more user is zero,so it is allocatively efficient to provide this good at a price of zero.
• C)Because the government can provide these goods with fewer resources,so it is productively efficient.
• D)The marginal private benefit to the last user is greater than the marginal private cost.
• E)The marginal benefit to society of providing access to one more user is zero,so it is allocatively efficient to provide this good at a price of zero.

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Definitions:

Statistic

A single measure, calculated from a sample, used to estimate the value of a population parameter.

Population

The entire group of individuals or instances about whom the study is concerned or from which a statistical sample is drawn for analysis.

Sample

A subset of a population used in statistical analysis to estimate characteristics or outcomes of the entire population.

Descriptive Measure

Statistical calculations that summarize or describe characteristics of a data set, including measures like mean, median, mode, and range.