Private Bridge Attracts Public InterestAt the council meeting last night, the Drover Company demanded that the town enforce its private property laws. Last year, the company built a bridge across Snake Stream to make it easier for employees to reach its offices. The bridge, company owner Celia Drover said, is private. She went on to complain that many nonemployees have been using the bridge, rather than drive seven miles south to cross the stream on a state-owned bridge.Which of the following best describes the use of the private bridge by the public?

TECHNOLOGY

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Private Bridge Attracts Public InterestAt the council meeting last night, the Drover Company demanded that the town enforce its private property laws. Last year, the company built a bridge across Snake Stream to make it easier for employees to reach its offices. “The bridge, “ company owner Celia Drover said, “is private.” She went on to complain that many nonemployees have been using the bridge, rather than drive seven miles south to cross the stream on a state-owned bridge.Which of the following best describes the use of the private bridge by the public?

A	the efficient allocation of resources
B	the free-rider problem
C	positive externalities
D	negative externalities

Explanation:

Detailed explanation-1: -By “the invisible hand, ” Adam Smith refers to the notion that desirable social goals are usually reached by individuals following only their own self-interest.

Detailed explanation-2: -For a good to be classified as a public good, it must meet two conditions: It must be non-excludable and nonrival. A good is nonexcludable if the supplier of the good cannot prevent those who don’t pay it from consuming or using it.

Detailed explanation-3: -Which statement challenges the main idea of Marx’s statement? Labor unions and the government protect the rights of American workers.

Detailed explanation-4: -Households are the owners of the factors of production and sell labor in exchange for a wage, land in exchange for rent, and capital in exchange for interest.

There is 1 question to complete.

ECONOMICS (CBSE/UGC NET)

ECONOMICS

TECHNOLOGY