A-LevelEconomicsThe price system and the microeconomy9708/12 · May/June 2012 · Q161 Mark
Why does the production of public goods have to be financed by the government?
AOne person's consumption of a public good means it is not available for anyone else.
BPeople are able to consume public goods without paying for them.
CPrivate sector firms will charge a price significantly above cost for public goods.
DThe cost of producing public goods is higher in the private sector.
✓ Correct answer
B: People are able to consume public goods without paying for them.
Practise more questions on this topic
Oracle Prep sorts past-paper questions by topic, so you can drill The price system and the microeconomy and see which topics are most likely to come up next.
Sign up free →