Private Producers Have No Incentive to Provide Public Goods Because

question 175

Multiple Choice

Private producers have no incentive to provide public goods because

• A)the government subsidy granted is usually insufficient to enable private producers to make a profit.
• B)production of huge quantities of public goods entails huge fixed costs.
• C)they cannot avoid the tragedy of the commons.
• D)once produced, it will not be possible to exclude those who do not pay for the good.

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Definitions:

Worldwide Economic Problems

Refers to financial challenges affecting countries globally, including inflation, unemployment, and debt crises.

Corporate Interests

The objectives or goals that a corporation prioritizes, often focusing on profit maximization and market expansion.

Immigration Laws

Regulations established by a country to control who can enter or leave, how long they may stay, and what activities they may undertake while present.

Immigrant Population

Refers to the group of individuals living in a country other than their birth or citizenship country, often highlighting aspects of demographic shifts, cultural diversity, and social dynamics.