If the government does not provide it, the quantity of a nonexcludable good that private firms will choose to produce is
A. zero.
B. more than the optimal amount.
C. the optimal amount.
D. optimal only if property rights are assigned.
E. optimal only if the industry is competitive.
Answer: A
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According to many economists who emphasize the connection between productive contribution and economic reward, income inequality
a. can actually make the poor better off in the long run b. has nothing to do with property rights c. promotes efficiency in the use of resources d. is consistent with long-run economic growth e. has a negative effect on savings and investment incentives
The Italian government collects a smaller amount of the taxes it is owed than the U.S. government. Other things being equal,
a. U.S. and Italian GDP should be equal. b. U.S. GDP should be higher than Italian GDP. c. U.S. GDP should be lower than Italian GDP. d. U.S. residents are better off than Italian residents.