Question

Perfectly competitive, unregulated markets with no externalities will provide the efficient level of

a. public goods

b. private goods.

c. common property resources.

d. none of these goods is efficiently provided in perfectly competitive markets.

e. all of these goods are efficiently provided in perfectly competitive markets.

f. artificially scarce goods

Public goods, such as free radio and national parks, are

a. nonexcludable and nonrival.

b. The same as private goods but supplied by the government.

c. excludable and nonrival.

d. nonexcludable and rival.

e. excludable and rival.

Answer 1

Q1
Answer
Option b
private goods
Private goods are excludable and rival in nature so the demand and supply will take the good to the efficient level of output where demand =supply but for other goods, there are problems of a free rider, externalities, nonexcludable, no rival and so these goods require some customized laws or should be provided by government or need taxes and so to be produced at an efficient level of output.

Q2
ANswer
Option a
Public goods are nonexcludable and nonrival Non-exludable means the consumption of the goods can not be stooped with fees or price or charge.
Nonrival means the consumption of the goods for all is possible at a time.