Which of the following statements concerning a pure public good is false?
A) It is impossible to exclude nontaxpayers from the enjoyment of the public good.
B) All benefits associated with the production and use of a public good are received by the government.
C) The availability of a public good to one person simultaneously makes it available to all members of society.
D) The private sector does not have an economic incentive to produce a socially optimal amount of a public good.

Question

Quizplus · Accepted Answer

This statement is false because the government does not receive all benefits associated with the production and use of a public good. Public goods provide benefits to the entire society, and individuals can consume them without reducing their availability to others. The government may provide public goods, but it does not receive all the benefits from them.

Which of the Following Statements Concerning a Pure Public Good