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When Goods Are Produced Privately, but the Cost of Their

Question 151

Multiple Choice

When goods are produced privately, but the cost of their purchase is paid for by the taxpayer or some other third party,


A) consumers have a strong incentive to search out those firms offering them the best deal.
B) private producers of such goods will have little incentive to control costs and provide them at low prices.
C) goods and services will only be supplied if consumers are willing to pay an amount sufficient to cover their production costs.
D) the invisible hand will direct consumers and producers toward an efficient level of output.

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