Comment on the following statement: "If the provision of public goods was left to private firms, the outcome would be more efficient than what occurs when the government provides them."

What will be an ideal response?

The statement is false. If the provision of public goods was left to private firms, the public goods would generally not be produced. If these goods have any value to households, this outcome would not be efficient at all. On the other hand, if the government is able to tax households and then provide the goods, a more efficient situation may result.

Economics

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If the quantity of fishing poles demanded is represented by the demand equation QD = 60 - P, then to solve for the price of fishing poles, the equation would be rewritten as

A) P = -60 + QD. B) P = QD + 60. C) P = 0.6QD + 10. D) P = 60 - QD.

Economics

In a market where one unit of labor produces one unit of output, consumers prefer

A) a competitive labor market and a monopoly output market. B) a competitive output market and a monopoly labor market. C) a monopoly output market and a monopoly labor market. D) None of the above—they are indifferent between A and B.

Economics