A public good Multiple Choice O Is any good produced by the government. O Causes government failure. O Is overproduced by the market. O Is subject to the free-rider dilemma.If public goods were marketed like private goods, then Multiple Choice O Public goods would be overproduced. O There would be market failure. O The economy would be outside the production possibilities curve. O The optimal mix of output would occur at the market equilibrium.Which of the following is the best example of a government effort to address market failure in relation to the FOR WHOM to produce question? Multiple Choice O Transfer payments. O The production of goods that allow free riders. O Regulations reducing pollution. O Antitrust policy.The free-rider problem Multiple Choice O Reflects the inability to exclude an individual from the benefits of someone else's purchase. O Means that the market mechanism is the most efficient way to produce public goods. O Arises from the ability to exclude an individual from the benefits of someone else's purchase. O Is a government failure resulting from consumption of private goods.D C Railroads . E B All Other Goods Figure 4.1 Using Figure 4.1, suppose that point B represents the optimal mix of output for a society. If market forces cause society to produce and consume at point C, then Multiple Choice Points A and D are unattainable with the given resources and technology.Multiple Choice O Points A and D are unattainable with the given resources and technology. O There is market failure. O The forces of supply and demand will return society to point B. O There is government failure.States receive most of their tax revenues from Multiple Choice O Sales taxes. O Property taxes. O State income taxes. O User charges.The majority of federal expenditures is spent on Multiple Choice O Income transfers. O Private sector purchases of goods and services. O Public sector purchases of goods and services. O National Defense.The market wlll overproduce goods that have external costs because Multiple Choice 0 The government is not able to produce these goods. 0 Producers experience lower costs than society. 0 Producers can not keep these goods from consumers who do not pay, so they have to produce greater amounts. 0 Producers experience higher costs than society. A natural monopoly is Multiple Choice O An industry in which one firm can achieve economies of scale over the entire range of market supply. O An industry that is dominated by a single firm. O A monopoly that always benefits society even when it is unregulated. O An unregulated monopoly.Cities and other local governments receive most of their tax revenues from Multiple Choice O Local income taxes. O Property taxes. O Sales tax. O Excise taxes