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Why Would It Be Inefficient for the Government to Charge

Question 39

Multiple Choice

Why would it be inefficient for the government to charge a price for consuming a public good such as national defence?


A) Too much defence will be provided.
B) The price cannot be set to cover all defence costs.
C) No one will be willing to pay to consume any national defence.
D) The marginal cost of providing national defence is zero.
E) Too little national defence will be provided.

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