It Is Difficult for a Private Market to Provide the Economically

question 89

Multiple Choice

It is difficult for a private market to provide the economically efficient quantity of a public good because

• A)by law governments cannot use cost-benefit analysis to determine this quantity.
• B)public goods produce positive and negative externalities.
• C)individual preferences are not revealed in the market for the good.
• D)it is too expensive to produce the necessary amount of the good.

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Definitions:

Disbursement Float

The time delay between when a check is issued and when it is actually deducted from the payer's bank account, affecting cash management.

Transaction

An agreement or exchange between two parties that involves the sale, purchase, or trade of goods, services, or information.

Book Balance

The Book Balance represents the amount of money a company records in its accounting records, not necessarily reflecting the available or actual cash on hand.