A Major Reason Why Public Goods Are NOT Supplied by the Market

question 30

Multiple Choice

A major reason why public goods are NOT supplied by the market is the

• A) free-rider problem.
• B) existence of negative externalities.
• C) fact that no one is willing to pay for them.
• D) fact that public goods are rival.
• E) fact that no firm would be able to earn a profit by producing them.

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Definitions:

Crowd-as-mad

The stereotypical view that crowds are irrational, emotional, and capable of violence, overlooking the potential for rational collective behavior.

Crowd Behavior

The study of how individuals in a crowd influence and are influenced by others, often resulting in collective behavior that is different from what they would exhibit individually.

Sports Fans

Individuals passionately interested in following and supporting specific sports, teams, or athletes.

Convergence Theory

A theory that suggests collective action and social movements arise from individuals with similar issues, ideas, or desires naturally coming together.