Asked by Kolby Finnie on Jul 22, 2024
Verified
Because public goods are characterized by being collectively consumed,
A) the government cannot produce them.
B) they are illegal.
C) they are very expensive; thus the private sector cannot provide them.
D) the private sector may not provide them because they cannot exclude those who do not pay.
Exclude
To deliberately leave something or someone out of a group, list, or conversation.
Public Goods
Goods that are non-excludable and non-rivalrous, making it difficult to restrict access to their benefits only to those who pay for them.
Collectively Consumed
Products or services that are used or consumed by a group of people simultaneously, such as public goods.
- Recognize the role and characteristics of public goods and the reasons behind government provision of such goods.
Verified Answer
DC
Delano CodnerJul 24, 2024
Final Answer :
D
Explanation :
Public goods are non-excludable and non-rivalrous, meaning they can be consumed by anyone regardless of whether they have paid for them or not. This characteristic makes it difficult for private sector entities to charge for these goods, leading to potential underproduction or no production at all without government intervention.
Learning Objectives
- Recognize the role and characteristics of public goods and the reasons behind government provision of such goods.