Identify the Truthfulness of the Following Statements

question 42

Multiple Choice

Identify the truthfulness of the following statements.
I. Because the production function identifies the maximum amount of output that can be produced from a given combination of inputs, only technically efficient input combinations are found on the production function.
II. The production function identifies the technically feasible combinations of inputs.

• A) Both I and II are true.
• B) Both I and II are false.
• C) I is true; II is false.
• D) I is false; II is true.

Understand the challenges related to providing public goods and dealing with the free-rider problem.

Identify and explain sources of government failure.

Describe the characteristics and provision challenges of public and quasi-public goods.

Discuss rent-seeking behavior and the principal-agent problem in representative democracies.