Author Question: Public provision A) is the production of a good by the government by giving funds to private ... (Read 143 times)

asmith134 · **on:** Jun 29, 2018

Public provision

A) is the production of a good by the government by giving funds to private producers.
B) lowers the marginal cost of producing the good.
C) means the good is produced by a public authority that receives the most of its revenue from the government.
D) Both answers A and B are correct.
E) Both answers B and C are correct.

Question 2

Which of the following creates an incentive to increase the amount of an activity?

A) an increase in the marginal cost of the activity and a decrease in the marginal benefit of the activity
B) a decrease in the marginal cost of the activity and an increase in the marginal benefit of the activity
C) constant marginal cost and constant marginal benefit of the activity
D) None of the above create an incentive to increase the amount of an activity.