Author Question: Why will a private market be unable to produce the efficient quantity of public goods? A) because ... (Read 68 times)

Themember4 · **on:** Jun 29, 2018

Why will a private market be unable to produce the efficient quantity of public goods?

A) because the good's marginal cost is too low
B) because the good is nonexcludable, so there is the free rider problem
C) because the good is rival, so no one will want to pay the producer for it
D) All of the above answers are correct.

Question 2

In the figure above, the Lorenz curve that shows the richest 20 of households percent receiving 60 percent of all income is

A) curve A.
B) curve B.
C) curve C.
D) curve D.