Which of the following is true of public goods?
A) They can only be supplied by the government.
B) They will tend to be supplied efficiently by the private sector when markets are competitive.
C) It is difficult to establish a one-to-one link between payment and receipt of such goods.
D) From an efficiency standpoint, private markets will tend to supply an excessively large amount of public goods.

Question

Quizplus · Accepted Answer

Public goods are characterized by non-excludability and non-rivalry, making it difficult to charge individuals directly for their use, hence establishing a direct payment-receipt link is challenging.

Which of the Following Is True of Public Goods