Efficiency losses ____________________________. a. Are not possible if suppliers are wil
Efficiency losses ____________________________.
a. Are not possible if suppliers are willing to produce and sell a product.
b. Can only result from underproduction.
c. Can only result from overproduction.
d. None of the above.
4. Draw a production possibilities curve with public goods on the vertical axis and private goods on the horizontal axis. Assuming the economy is initially operating on the curve, indicate how the production of public goods might be increased. How might the output of public goods be increased if the economy is initially operating at a point inside the curve?
5. Use the distinction between the characteristics of private and public goods to determine whether the following should be produced through the market system or provided by government: (a) French fries, (b) court systems, (c) mail delivery, and (d) medical care. State why you answered as you did in each case.