Which of the following is a disadvantage of government provision of a public good?
a. The government lacks information about what people are willing to pay for the good.
b. The government does not provide enough of any public good.
c. The private sector can provide all public goods at a lower cost.
d. None of the above is a disadvantage.
a
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The equilibrium level of regulation is _____
a. determined where marginal political gains to the special interests are equal to the marginal political costs of the foregone regulation b. determined where the marginal benefits from the regulation are equal to the marginal costs of the regulation c. determined where the marginal political benefits to the special interests are equal to zero d. determined where the marginal benefits from the regulation are equal to zero
When an economy is in a recession,
a. strong demand for investment funds will push interest rates upward. b. strong demand for resources will push the prices of resources upward. c. the real interest rate will tend to rise. d. the unemployment rate will rise above its natural rate.