When It Comes to Public Goods, It Is Important to Remember

question 181

Multiple Choice

When it comes to public goods, it is important to remember

• A) that government intervention necessarily solves the market failure.
• B) only one level of output can be realized, and consumers are willing to pay different amounts for that level.
• C) the free rider problem is difficult to overcome, but the drop-in-the-bucket problem is not.
• D) all goods provided by the government are public goods.

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Definitions:

Id

In psychoanalytic theory, the part of the personality that is the source of instinctual impulses and demands for immediate satisfaction of primitive needs.

Superego

A component of Sigmund Freud's psychoanalytic theory, representing the ethical component of the personality and provides the moral standards by which the ego operates.

Freud

Sigmund Freud was an Austrian neurologist who founded the discipline of psychoanalysis.

Guilty

A sense of obligation or regret for a specific misdeed, transgression, or fault, regardless of its actuality.