The free-rider problem is the reason way private markets are unlikely to achieve the efficient level of production of
A) normal goods.
B) excludable goods.
C) public goods.
D) private goods.
C
You might also like to view...
Which of the following most accurately describes world population growth?
a. World population has increased steadily during the past 6,000 years. b. World population has exhibited significant cyclical patterns of growth and decline. c. World population was relatively small until 1750, after which it increased rapidly. d. World population was small until World War II, after which it increased very quickly.
Suppose that a negative externality is created by the production of good X. Which of the following statements is correct?
a. The social cost of producing good X includes the private cost plus the cost to bystanders of the externality. b. The increased social cost can be graphed as a decrease in demand. c. The market equilibrium quantity will be the socially optimal quantity as long as the government does not interfere. d. Both a and b are correct.