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:

Prion

A type of infectious agent made up of protein in a misfolded form, which is known to cause a number of neurodegenerative diseases.

Protein

Large molecules composed of one or more long chains of amino acids, essential for the structure, function, and regulation of the body's cells, tissues, and organs.

Multicelled Fungi

Organisms from the fungi kingdom that consist of more than one cell, including molds, mushrooms, and yeasts, known for their roles in decomposition and as pathogens.

Spores

Resistant, dormant forms of certain fungi, plants, and bacteria that can survive adverse conditions and give rise to a new individual.