UNIT 03 / GOVERNMENT MICROECONOMIC INTERVENTION

Reasons for government intervention in markets3.1 test

100 questions with explanations after each answer.

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QUESTION 01 / 100Easy

Why may a public good not be provided by a free market?

Select one answerAThe costs of supplying public goods are necessarily too high.BEach beneficiary must receive exactly the same value from provision.CPrivate suppliers cannot physically produce goods used by many people.DBeneficiaries can avoid payment, leaving suppliers without sufficient revenue.

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Question 1