Question

Do you agree or disagree with each of the following​ statements?

The government should be involved in providing health care for all citizens because health care is a​ "public good."

A. ​Disagree, because health care is a public good that generates a negative externality.

B.​Disagree, because health care is a private good that is nonrival and nonexcludable.

C.​Disagree, because health care is a mixed or private good.

D. Agree, because health care is a public good that generates a positive externality in consumption.

From the standpoint of economic​ efficiency, an unregulated market economy tends to underproduce public goods.

A. Disagree, an unregulated market economy only underproduces public goods when they are also mixed goods.

B. ​Agree, because an unregulated market economy tends to underproduce public goods because they are rival.

C. ​Agree, as an unregulated market tends to underproduce public goods because they are nonrival and nonexcludable.

D. ​Disagree, because unregulated market economies only overproduce public goods because they are rival.

Answer 1

1) Option C :- Disagree, because health care is a mixed or private good.

• Health care is mixed or private good.
• Healthcare is treated as a private good which is handled by an individual.

2) Option C :- Agree as an unregulated market tends to underproduce public goods because they are nonrival and nonexcludable

• According to economic efficiency, the Unregulated market economy tends to underproduce as they are not rival and also they are non excludable.

Thanks