Which of the following statements is not correct?
A)Medical research can be an example of a public good.
B)The private market will tend to undersupply public goods.
C)The free-rider problem occurs when a good is nonexcludable.
D)All goods provided by the government are public goods.

Question

Quizplus · Accepted Answer

The statement that all goods provided by the government are public goods is incorrect. While the government may provide some public goods, such as national defense, it also provides private goods, such as subsidies to specific industries.

Which of the Following Statements Is Not Correct