Practice mode Public Goods

A positive externality distorts market efficiency in a way similar to which type of good?

Correct answer D. Public good

Explanation

Public goods give benefits to people who do not pay, much like a positive externality, so in both cases the market supplies too little.

Report a problem

Answer checked How we write and check questions

Tip: press A, B, C or D to answer, and N for the next question.

Advertisement

Have a question about this answer?

Your email address will not be published. Required fields are marked *

Links and website addresses are not allowed in comments.