Which of the following is true of public goods?
a. The market mechanism helps to signal the quantity that is demanded by the public.
b. Payment for consumption is efficiently provided by market prices.
c. Consumption by one person does not preclude consumption of the same good by another person.
d. The public sector is guided to produce the correct quantity by market prices.
e. Voluntary contributions will be sufficient to finance the production of public goods.
C
You might also like to view...
Evidence that most investors are risk averse is that they
A) buy a diversified portfolio. B) buy different bonds with the same yield and maturity. C) put most of their funds in one company's stock. D) like to gamble.
The monetarists emphasize the
a. importance of fiscal policy for determining GDP. b. the instability of the money supply. c. the stability of velocity. d. need to "fine tune" the level of economic activity. e. both b and c.