Which of the Following Is True of Public Goods

question 116

Multiple Choice

Which of the following is true of public goods?

• A)The market mechanism helps to signal the quantity that is demanded by the public.
• B)Payment for consumption is efficiently provided by market prices.
• C)Consumption by one person does not preclude consumption of the same good by another person.
• D)The public sector is guided to produce the correct quantity by market prices.
• E)Voluntary contributions will be sufficient to finance the production of public goods.

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Definitions:

Promisor

The person in a contract who pledges to undertake an action or provide a service or good.

Highly Personal

Pertaining to items or information that are deeply personal or private in nature, often with legal implications for their handling or disclosure.

Assignable

describes a right or property that can be transferred or made over to another party legally.

Partial Assignment

The transfer of a portion of the interest or rights in a contract, property, or other asset from one party to another.