Luis Remembers to Add the Half-Teaspoon of Sugar to Erica's

question 208

Multiple Choice

Luis remembers to add the half-teaspoon of sugar to Erica's black coffee."Mmm! You remembered the sugar!" Erica exclaims in satisfaction after taking her first sip.In the language of signal detection theory,Erica's response is a:

• A) miss.
• B) correct rejection.
• C) false alarm.
• D) hit.

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Definitions:

Nonrival

Refers to a good where one person's use does not reduce the amount available for others.

Nonexcludable

A characteristic of goods where it is difficult or impossible to prevent people from using the good once it has been provided.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning they are available to every individual without diminishing availability to others, such as national defense, public parks, and clean air.

Marginal Social Benefit

The additional benefit that society receives from the consumption of an additional unit of a good or service.