What is critical in determining whether something is produced as a public good Quizizz?

Cost is critical in determining whether something gets produced as a public good. When a good or service is public, the benefit to each individual is less than the cost that each would have to pay if it were provided privately and the total benefits to society are greater than the total cost.

The police department is also considered as a public good. It is because that improved security and lower crime will benefit everyone in the community as a result of your efforts to maintain law and order.

The public goods demonstrate the limitations of free market economy because in a free market economy, the role of the government is limited which leads to less availability of public and merit goods. Therefore, the government makes only some economic decision.

It shows that there is a limit to the quantity of products that can be produced with existing resources and technology. Q. An economy produces different types of goods using its limited resources. This can be illustrated by a production possibility curve.