The Difference Between a Private Good and a Public Good

question 152

Multiple Choice

The difference between a private good and a public good is that

• A) private goods are government-sponsored goods while public goods are government-inhibited goods.
• B) externalities are always created in the production process but not in the production of public goods.
• C) private goods make us happy while public goods do not.
• D) the exclusion principle applies to a private good but not to a public good.

Analyze the distinguishing features of the human brain compared to other animals.

Understand the neurobiological basis of disorders, including substance use disorders.

Grasp the concept of cerebral hemispheric organization and specialization.

Recognize the significance of brain plasticity and its role in sensory and motor functions.

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Definitions:

Homogeneous

A description of products or services that are identical in quality and cannot be distinguished from one another by consumers.

Monopolistically Competitive

Describing a market structure where many companies sell products that are similar but not identical, leading to competitive prices and product differentiation.

Demand Schedule

A chart that displays the quantity of a good or service demanded at various prices.

Price Elastic

The measure of how much the quantity demanded of a good responds to a change in the price of that good, reflecting its elasticity.