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AP Microeconomics
Unit 6 – Market Failure and the Role of Government
Topic 6.3
Why do public goods tend to be underprovided in the absence of government intervention?
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.
The market fails to allocate resources efficiently for public goods.
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AP Microeconomics - 6.3 Public and Private Goods
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Government Intervention
Public Goods
Underprovided
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About Us
About Fiveable
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Terms of Use
Privacy Policy
CCPA Privacy Policy
Resources
Cram Mode
AP Score Calculators
Study Guides
Practice Quizzes
Glossary
Crisis Text Line
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© 2024 Fiveable Inc. All rights reserved.
AP® and SAT® are trademarks registered by the College Board, which is not affiliated with, and does not endorse this website.
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