It is argued that the market will
A. not produce a nonexcludable public good.
B. produce the socially optimal output of a nonexcludable public good.
C. produce too much of a nonexcludable public good.
D. produce a nonexcludable public good if marginal social benefits are equal to marginal private benefits.
E. b and d
Answer: A
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Under a socialist system,
a. most resources are owned by the state b. most resources are shared with the whole community c. market prices determine how resources are distributed d. conflicts are usually resolved by consensus e. most resources are privately owned
Which of the following is NOT one of the basic questions that an economic system attempts to answer?
A) How to identify what people need? B) What to produce? C) How will goods and services be produced? D) For whom will goods and services be produced?