Economics (AS & A Level) · Oct / Nov 2021 · Paper 13 · Question 15
9708Classification of goods and services
Why does the production of public goods have to be financed by the government?
- AOne person's consumption of a public good means it is not available for anyone else.
- BPeople are able to consume public goods without paying for them.
- CPrivate sector firms will charge a price significantly above cost for public goods.
- DThe cost of producing public goods is higher in the private sector.
As printed in the paper
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Correct answer: B. People are able to consume public goods without paying for them.
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