If the free market is called upon to provide public goods, then:
A. there will more public goods provided than is optimal.
B. there will be fewer public goods provided than is optimal.
C. the market will provide the optimal number of public goods.
D. the market price will be correct, and the optimal amount of output of public goods will be produced.
Answer: B
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Refer to Figure 23-2. If the U.S. economy is currently at point K, which of the following could cause it to move to point N?
A) Household wealth declines. B) The price level in the United States falls relative to the price level in other countries. C) The interest rate rises. D) Congress abolishes investment tax incentives.
When the Glass-Steagall Act was repealed in 1999, potential conflicts of interest arose with
A) the development of universal banking. B) the introduction of more credit-rating agencies. C) accounting firms developing more comprehensive services. D) investment analysis in investment banking.