Which of the Following Is True of Public Goods

question 10

Multiple Choice

Which of the following is true of public goods?

• A) The market mechanism helps to signal the quantity that is demanded by the public.
• B) Payment for consumption is efficiently provided by market prices.
• C) Consumption by one person does not preclude consumption of the same good by another person.
• D) The public sector is guided to produce the correct quantity by market prices.
• E) Voluntary contributions are sufficient to finance the production of public goods.

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Definitions:

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, resulting in market equilibrium.

Surplus

An excess amount of something, often referring to goods, services, or resources that exceed what is needed or used.

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, leading to a situation where there is no tendency for the price to change unless external factors intervene.

Government Imposes

Measures or regulations put in place by the government that can impact various aspects of economic and social life.