Which of the following is least accurate regarding obstacles to the efficient allocation of resources in a competitive market?
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A) |
Public goods, such as national defense, tend to be overproduced because they can be consumed by everyone whether they pay for the goods or not. | |
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B) |
Subsidies lead to production of more than the efficient quantity of the good. | |
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C) |
Quotas result in production of less than the efficient quantity of the good. | |
Public goods can be consumed by every member of a society, regardless of whether they paid for them or not. In a competitive market for public goods, fewer goods than the efficient quantity would be produced because it is not in each person’s interest to pay their share of the cost. | 
发表于 2010-4-16 21:42
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