In the context of both positive externalities and public goods, briefly explain why private firms or individuals might fail to make expenditures or investments that would produce broad social benefits.
What will be an ideal response?
Answer: With regard to both positive externalities and public goods, private firms or individuals acting may fail to make an expenditure or investment that would produce broad social benefits, because the private benefits of such expenditure will be substantially less than the social benefits.
Economics
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It is impossible to incorporate the value of human life into implicit and explicit cost-benefit analyses
Indicate whether the statement is true or false
Economics
Automatic fiscal policy ________
A. requires an action of the government B. is weak unless the government cuts its outlays to reduce the deficit C. operates as the economy moves along its business cycle D. reduces the deficit as the economy goes into recession
Economics