A public good will:
A. be efficiently provided by the free market as long as its total benefits exceed its total costs.
B. be efficiently provided by the free market as long as its marginal benefits exceed its marginal costs.
C. be provided in less than efficient quantities by the free market.
D. be provided in efficient quantities by voluntary contributions.
Answer: C
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What do economists call movements of labor and capital between nations?
What will be an ideal response?
If Wes in Wisconsin buys $200 worth of stock in Toshiba, and the Japanese use the $200 to buy a wheel of cheese from Wes, then the U.S. net exports:
A. and net capital outflow are both zero. B. equals $200 and net capital outflow is zero. C. and net capital outflow both equal $200. D. is zero and net capital outflow is $200.