The provision of public goods gives rise to
A)no externalities.
B)positive externalities.
C)negative externalities.
D)rivalries in consumption.

Question

Quizplus · Accepted Answer

The provision of public goods gives rise to positive externalities, as one person's consumption of the good does not diminish another person's ability to consume the same good. This creates a situation where the marginal social benefit of the good exceeds the marginal private benefit, resulting in positive externalities.

The Provision of Public Goods Gives Rise to