When it comes to public goods, it is important to remember
A) that government intervention necessarily solves the market failure.
B) only one level of output can be realized, and consumers are willing to pay different amounts for that level.
C) the free rider problem is difficult to overcome, but the drop-in-the-bucket problem is not.
D) all goods provided by the government are public goods.

Question

Quizplus · Accepted Answer

Public goods are non-excludable and non-rivalrous, meaning that one level of output is provided, and individuals may value or be willing to pay different amounts for it.

When It Comes to Public Goods, It Is Important to Remember