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1. Public goods tend not to be sold in the marketplace because: a. there would b

ID: 1097017 • Letter: 1

Question

1.      Public goods tend not to be sold in the marketplace because:

a.

there would be no demand for them because they do not yield any benefits.

b.

they are by nature so expensive that only the richest buyers can afford them if sold this way.

c.

the benefits would be denied to non-buyers if sold this way.

d.

their nature is such that if supplied to one buyer, they automatically become available to non-buyers as well.

a.

there would be no demand for them because they do not yield any benefits.

b.

they are by nature so expensive that only the richest buyers can afford them if sold this way.

c.

the benefits would be denied to non-buyers if sold this way.

d.

their nature is such that if supplied to one buyer, they automatically become available to non-buyers as well.

Explanation / Answer

B they are by nature so expensive that only the richest buyers can afford them if sold this way.