The Market System Fails to Provide the Efficient Output of Public

question 64

Multiple Choice

The market system fails to provide the efficient output of public goods because:

• A)people do not value public goods.
• B)private firms cannot restrict the benefits from those goods to consumers who pay for them.
• C)public enterprises can produce those goods at a lower cost than private firms.
• D)public goods create widespread spillover costs.
• E)public goods generate positive externalities and markets tend to underproduce such goods.

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Definitions:

Persuasive Message

A form of communication designed to influence the attitudes, beliefs, or behaviors of others through reasoning and emotional appeals.

Overcome Resistance

Strategies or actions taken to reduce opposition or reluctance among individuals or groups.

Testimonial

A formal statement testifying to someone's character and qualifications or the benefits and performance of a product or service.

Job Offers

Formal propositions provided by employers to potential employees outlining terms of employment.