Which Statement Is Generally TRUE

question 38

Multiple Choice

Which statement is generally TRUE?

• A) Private markets overprovide public goods.
• B) Private markets underprovide public goods.
• C) Private markets provide the socially optimal amount of public good.
• D) Public goods must be priced at more than twice their price in the private market in order to provide the socially optimal amount.

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Definitions:

Pledge

A promise or agreement to do something, often backed by an assurance in the form of property or rights as a security for the fulfillment of an obligation.

UCC

The Uniform Commercial Code is a collection of legal guidelines that regulate business dealings across the United States.

Creditor

An individual or entity that is owed money or other forms of assets by a debtor.

Field Warehouse

A secured area within a business's premises that is operated by an independent warehousing company for storing pledged goods under a field warehousing agreement.