To achieve the efficient level of national defense,
A. the government can provide national defense because it is a common resource.
B. the government can provide national defense because it is a private good.
C. private firms can provide national defense because it is a private good.
D. the government could provide national defense because it is a public good.
E. None of the above answers is correct.
Answer is D. the government could provide national defense because it is a public good.
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Public good is defined as a good which is non excludable and non rivalous. It means that no individual can be exclusively to use national defence neither use of it by one will prevent others from using it too.
To achieve the efficient level of national defense, A. the government can provide national defense because...
Which of the following statements is (are) correct? Select one: A. National defense is provided by the government because free-riders make it difficult for private markets to supply the socially optimal quantity. B. National defense is an example of a public good because it is nonrivalrous and it is difficult to exclude people from receiving the benefits from national defense once it is provided. C. National defense is a typical example of a public good because if individuals were required...
Perfectly competitive, unregulated markets with no externalities will provide the efficient level of a. public goods b. private goods. c. common property resources. d. none of these goods is efficiently provided in perfectly competitive markets. e. all of these goods are efficiently provided in perfectly competitive markets. f. artificially scarce goods Public goods, such as free radio and national parks, are a. nonexcludable and nonrival. b. The same as private goods but supplied by the government. c. excludable and nonrival....
When it comes to public goods like national defense, the __________ is a serious problem. because people who do not pay cannot (easily) be excluded from the consumption of the good. A. Tax incidence B. Free-rider program C. Marginal propensity to consume D. Common resource problem
26. what environmental problem arises from common property resources? a. negative externality. b. overexploitation. c. government failure. d. high transaction cost. 27. Externalities are a. exports. b. illegal businesses. c. prisoners on work release d. costs or benefits not reflected in market prices. 29. The efficient quantity of a public good is that for which marginal social cost equals a. marginal private cost. b. marginal external cost. c. average social cost. d. marginal social benefit. 30. Which of the following...
Suppose the government is producing a public good. If the marginal benefit of the last unit of a public good produced is greater than the marginal cost of that unit, to achieve the efficient amount of production, what should be done? A. The government should produce more units. B. The government should cease production. C. Private firms should take over the production and sale of the good. D. Nothing because the government is already producing the efficient quantity of the...
National defense is a good viewed to have significant positive externalities. Which of the following is false concerning goods with positive externalities? The quantity of national defense produced naturally in a free market would be less than the efficient quantity The government can increase efficiency by subsidizing or producing national defense themselves The private benefits of producing national defense are greater than the social benefits
12. A "mixed" public good is one which a) has the properties of both private and public goods. b) is provided by both the government and private firms. c) is valued differently by different people. d) None of the above. 13. It is inefficient to charge a price for a non-rival good because a) the marginal cost of the good is zero. b) the marginal cost of an additional consumer is zero. c) the marginal willingness to pay of an...
1. Consider the issue of determining the optimal amount of investment in national defense in a country composed of two regions. Assume that national defense is a pure public good; it is non-rival and non-excludable. Denote by q the amount of national defense. The total cost of producing q units of defense is C(q) = 107. In region 1, the total benefit of national defense is B1(q) = 109 - 22 In region 2, the total benefit of national defense...
The government could correct the difference between the equilibrium output level and the efficient output level bytaxing users so that less is used.using a regulation that requires firms to externalize the internal costsshifting the demand curve down.using a regulation that requires firms to internalize the external costs
Once it becomes obvious that a common resource is being overused, A. market forces cause the use of the resource to shift to a sustainable level. B. it continues to be overused because individuals usually have no incentive to reduce their use of the good. C. society voluntarily limits its use of the good in nearly all cases because a person nearly always opts to foster and support community interest instead of individual self-interest. D. the good becomes a club...