The Market System Does Not Produce Public Goods Because

question 186

Multiple Choice

The market system does not produce public goods because

• A)there is no need or demand for such goods.
• B)private firms cannot stop consumers who are unwilling to pay for such goods from benefiting from them.
• C)public enterprises can produce such goods at lower cost than can private enterprises.
• D)their production seriously distorts the distribution of income.

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Definitions:

Junk Bonds

High-yield, high-risk securities issued by corporations or municipalities considered to be at greater risk of default.