Without government intervention, public goods will be __________ provided by markets alone. Group of answer choicesequitablyunderefficientlyoverly

Government intervention is required to provide private goods, which would not otherwise be provided by the market.Question 7Select one:TrueFalse

Public goods are typically provided by the government, because private markets tend to aproduce less than the socially optimum quantity bproduce them at higher cost ccharge a monopoly price that is greater than the marginal social cost dproduce more than the socially optimum quantity

Which of the following is usually true about government-provided goods?Group of answer choicesPeople do not have to pay an explicit fee to enjoy these goods.These goods are not scarce.These goods have a zero opportunity cost.The invisible hand is at work to ensure these goods are provided in the market

Private producers have no incentive to provide public goods becauseGroup of answer choicesthe government subsidy granted is usually insufficient to enable private producers to make a profit.production of huge quantities of public goods entails huge fixed costs.they cannot avoid the tragedy of the commons.once produced, it will not be possible to exclude those who do not pay for the good.

Private decisions about consumption of common resources and production of public goods usually lead to anGroup of answer choicesinefficient allocation of resources and no external effects.efficient allocation of resources and external effects.inefficient allocation of resources and external effects.efficient allocation of resources and no external effects.