Question 1
We refer to the whole class of goods that firms will ________ in a completely unregulated market economy as public goods.
◦ underproduce
◦ overproduce
◦ not produce at all
◦ Both underproduce and not produce at all are correct.
Question 2
________ is an example of a public good.
◦ An American Airlines jet
◦ Police protection
◦ A Starbucks grande latté
◦ Chemotherapy