Asked by Divine Diamante on Jun 14, 2024
Verified
Which of the following statements is not true?
A) Some public goods are paid for by private philanthropy.
B) Private provision of public goods is usually unprofitable.
C) The free-rider problem results from the characteristics of nonrivalry and nonexcludability.
D) Public goods are only provided by government.
Public Goods
Goods or services that are available for consumption by everyone and where use by one individual does not reduce availability to others.
Private Philanthropy
Financial donations made by private individuals or organizations to charitable causes, often aimed at public welfare improvement.
Free-Rider Problem
A market failure that occurs when individuals consume a good without paying for it, typically in the context of public goods.
- Become familiar with the concept of public goods and their specific characteristics.
- Recognize the function of government within market-based economic systems.
Verified Answer
AB
Alexandra BoroffJun 21, 2024
Final Answer :
D
Explanation :
While government is often the primary provider of public goods, it is possible for private entities to provide them as well. Therefore, the statement "public goods are only provided by government" is not true.
Learning Objectives
- Become familiar with the concept of public goods and their specific characteristics.
- Recognize the function of government within market-based economic systems.