Subject - Economics:

Microeconomics

MCQ - 167-4177

Question:

Because of the free-rider effect, the private marketplace tends to

provide the allocatively efficient amount of a public good.
produce too much of a public good, requiring the government to intervene and tax the production of it.
produce a public good in the amount where the marginal benefit to society equals the marginal cost to society.
produce too much of a public good, requiring the government to intervene and tax the production of it.
produce too little of the public good, requiring the government to intervene and ban it.

Correct Answer: D

Explanation:

The private marketplace underprovides for a public good because free riders benefit from the good without paying for it. Government must provide the public good.

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269 MCQ for effective preparation of the test of Microeconomics of Economics section.

Read the MCQ statement: Because of the free-rider effect, the private marketplace tends to , keenly and apply the method you have learn through the video lessons for Microeconomics to give the answer. Record your answer and check its correct answer and video explanation for MCQ No. 167-4177.

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Solve the question for MCQ No. and decide which option (A through D/E) is the best choice to answer the MCQ, then click/tap the blue button to view the correct answer and it explanation.

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