Which of the following statements is not true? Multiple Choice

1. Some public goods are paid for by private philanthropy.

2. Private provision of public goods is usually unprofitable.

3. The free-rider problem results from the characteristics of nonrivalry and nonexcludability.

4. Public goods are only provided by government.

Question

Business

Karli Tate

20 February, 11:32

Which of the following statements is not true? Multiple Choice

1. Some public goods are paid for by private philanthropy.

2. Private provision of public goods is usually unprofitable.

3. The free-rider problem results from the characteristics of nonrivalry and nonexcludability.

4. Public goods are only provided by government.

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Answers (1)

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Tori Houston · Answer 1

4. Public goods are only provided by government.

Explanation:

The statement is false because, as stated by the previous options of the question, sometimes public goods are provided by private organizations even if they are usually unprofitable.

For example, in New York City the Central Park Conservancy is a private, non-profit organization that provides maintenance and operation for the Central Park. This is an example of a private organization employing its resources for the benefit of the public.