Principles of Microeconomics, 7th Edition

Published by South-Western College
ISBN 10: 128516590X
ISBN 13: 978-1-28516-590-5

Chapter 11 - Part IV - Public Goods and Common Resources - Quick Check Multiple Choice: 5

Answer

B

Work Step by Step

Public goods do not provide profit to sole proprietorship or companies. Public goods need to be provided by the government. Ex: Tornado Sirens. This benefits everyone that can hear the sirens and it was provided by the government so it is not excludable. In the absence of a government public goods would be underprovided.
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