Which of the following statements is correct?
A)The efficient provision of private goods is intrinsically more difficult than the efficient provision of public goods.
B)The efficient provision of public goods is intrinsically more difficult than the efficient provision of private goods.
C)Private markets provide quantities of public goods that exceed the socially-efficient quantities of those goods.
D)Private decision makers utilize quantities of common resources that fall short of the socially-efficient quantities of those resources.

Question

Quizplus · Accepted Answer

The efficient provision of public goods is intrinsically more difficult than the efficient provision of private goods due to the free-rider problem, which occurs when individuals benefit from the public good without contributing to its provision. Private goods can be efficiently provided through private markets where individuals pay for what they consume, but public goods require government intervention or other mechanisms to ensure that individuals contribute to their provision. The other statements are not correct.

Which of the Following Statements Is Correct