Multiple Choice
The privately-owned school system in Smalltown has a virtually unlimited capacity. It accepts all applicants and operates on both tuition and private donations. Although every resident places value on having an educated community, the school's revenues have suffered lately due to a large decline in private donations from the elderly population. Since the benefit that each citizen receives from having an educated community is a public good, which of the following would not be correct?
A) The free-rider problem causes the private market to undersupply education to the community.
B) The government can potentially help the market reach a socially optimal level of education.
C) A tax increase to pay for education could potentially make the community better off.
D) The private market is the best way to supply education.
Correct Answer:
Verified
Correct Answer:
Verified
Q3: Table 11-3<br> <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB7555/.jpg" alt="Table 11-3
Q34: Governments can improve market outcomes for<br>A)public goods
Q91: Table 11-1<br>Consider the town of Springfield with
Q160: In what way do public goods give
Q193: Table 11-4<br>There are four homes along Belmont
Q194: Mike Miller is the town manager of
Q195: Which of the following would not be
Q196: Property rights are well established for<br>A)private goods.<br>B)public
Q197: The provision of public goods gives rise
Q203: If people can be prevented from using