6) Why do markets fail in the provision of public goods? A. Individuals only take into...

 

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6) Why do markets fail in the provision of public goods? A. Individuals only take into account their personal benefit from the public good. B. Individuals who value the public good less will free-ride, paying nothing for the good and using what others provide. C. Markets don't fail when providing public goods. D. A and B. E. None of the above. 7) If public goods are provided by the private market, how much will be produced? A. Less than the optimal amount. B. The optimal amount. C. More than the optimal amount. D. None. E. None of the above. 8) How do we aggregate individual demand curves for PUBLIC goods? A. We horizontally sum them. B. We vertically sum them. C. We take the horizontal mean of them. D. We take the vertical mean of them. E. None of the above. 9) Why does the efficient fishing effort not equate to the maximum sustainable yield (MSY)? A. MSY is the point of maximum fish stock replenishment that doesn't take into account fishing effort costs B. Because the MSY is a theoretical property and not an actually obtainable one C. Because the price of fish goes down when higher stocks are harvested D. Because tragedy of the commons prevents the MSY from ever being reached 6) Why do markets fail in the provision of public goods? A. Individuals only take into account their personal benefit from the public good. B. Individuals who value the public good less will free-ride, paying nothing for the good and using what others provide. C. Markets don't fail when providing public goods. D. A and B. E. None of the above. 7) If public goods are provided by the private market, how much will be produced? A. Less than the optimal amount. B. The optimal amount. C. More than the optimal amount. D. None. E. None of the above. 8) How do we aggregate individual demand curves for PUBLIC goods? A. We horizontally sum them. B. We vertically sum them. C. We take the horizontal mean of them. D. We take the vertical mean of them. E. None of the above. 9) Why does the efficient fishing effort not equate to the maximum sustainable yield (MSY)? A. MSY is the point of maximum fish stock replenishment that doesn't take into account fishing effort costs B. Because the MSY is a theoretical property and not an actually obtainable one C. Because the price of fish goes down when higher stocks are harvested D. Because tragedy of the commons prevents the MSY from ever being reached

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6D A and B A and B are the two main reasons why markets fail to provide public goods Individuals onl... View the full answer