A fundamental aspect of public goods is that they
A) are just like private goods EXCEPT that everybody wants to consume the same amount.
B) have positive externalities.
C) are characterized by the principle of rival consumption.
D) can be consumed jointly by many people simultaneously.
Question 2
Government policies such as price controls, rent controls, and quantity restrictions have the effect of
A) promoting the attainment of an unhindered market equilibrium.
B) allowing quantity demanded to adjust to equality with aggregate supply.
C) creating excess quantities demanded or excess quantities supplied.
D) pushing prices to market clearing levels more rapidly than private market forces.
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