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AP Microeconomics
Unit 6 โ Market Failure and the Role of Government
Topic 6.3
Unit 6 โ Market Failure and the Role of Government
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6.3 Public and Private Goods
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mixed difficulty
Why do public goods tend to be underprovided in the absence of government intervention?
The market fails to allocate resources efficiently for public goods.
People have a preference for private goods over public goods.
Public goods are inherently costly to produce and distribute.
Individuals have an incentive to free-ride and enjoy the benefits without contributing.
Study guides (1)
AP Microeconomics - 6.3 Public and Private Goods
Key terms
Government Intervention
Public Goods
Underprovided
Glossary
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