Why Do Market Failures Arise in Case of Public Goods

question 47

Multiple Choice

Why do market failures arise in case of public goods?

• A)The quantity produced is much more than is actually required by the people.
• B)The quality of these goods are not good enough.
• C)The quantity produced is too less from the society's point of view.
• D)The government wastes a lot of resources for producing a public good.
• E)The users of such goods are required to pay a high price for these goods.

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Definitions:

Nuanced Inferences

Making detailed and fine distinctions in interpreting information, often beyond the obvious.

Field-Independent

Field-independent individuals have the cognitive ability to focus on specific information or tasks without being significantly influenced by surrounding context or distractions.

Field-Dependent

A cognitive style where individuals are more likely to rely on external references for processing information and solving problems.

Studying Alone

The practice of learning or reviewing material by oneself without the direct involvement of teachers or peers.