Asked by Cynthia Aborn on Jul 23, 2024
Verified
Because we collectively consume ________ goods, firms in the private sector may not provide them because they ________ exclude those who do not pay.
A) public; can
B) private; cannot
C) private; can
D) public; cannot
Public Goods
Goods or services that are available to all members of society, characterized by non-excludability and non-rivalry in consumption.
Exclude
Refers to the act of leaving something or someone out or not including them.
- Identify the contribution of public goods and the issue of insufficient production in a market-driven economy.
- Recognize instances of public goods along with their distinctive features.
Verified Answer
RK
rohan kanwarJul 26, 2024
Final Answer :
D
Explanation :
Public goods are those from which individuals cannot be excluded from using, and where use by one individual does not reduce availability to others. Firms in the private sector may not provide them because they cannot exclude those who do not pay, making it difficult to charge for their use.
Learning Objectives
- Identify the contribution of public goods and the issue of insufficient production in a market-driven economy.
- Recognize instances of public goods along with their distinctive features.