Public Goods Are Unlikely to Be Provided by the Private

question 55

Multiple Choice

Public goods are unlikely to be provided by the private sector because

• A) the production of the good creates negative externalities.
• B) no one can be excluded from the consumption of the good.
• C) the consumption of the good creates negative externalities.
• D) the exclusion principle does not apply to public goods.

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Definitions:

Mediation

A form of alternative dispute resolution where a neutral third party helps disputing parties to come to a mutually acceptable agreement.

U.S. Government

The government of the United States, a federal republic consisting of a national government, 50 states, the District of Columbia, and several territories.

Federal Court

A Federal Court is a court established by the federal government of a country, having jurisdiction over matters specifically reserved for the national government by the constitution.

State Court

The judiciary body at the state level in the United States, handling legal disputes and interpreting state laws.