Exhibit 5-1 -Refer to Exhibit 5-1. as the Individual Consumes Each Additional

question 125

Multiple Choice

Exhibit 5-1
-Refer to Exhibit 5-1. As the individual consumes each additional can of soda, total utility

• A)increases by 9 units of utility.
• B)increases at a decreasing rate.
• C)stays constant.
• D)increases at an increasing rate.
• E)decreases by 9 units of utility.

---

Definitions:

Public Good

A good or service provided at no cost to every person in a society, delivered by either state institutions or a nonprofit private individual or organization.

Government Intervention

Actions taken by a government to affect the economy, which can include regulations, subsidies, tariffs, and taxes.

Excludable

A characteristic of a good whereby it is possible to prevent people from enjoying the good unless they have paid for it.

Club Goods

Goods that are excludable but non-rivalrous, where one person's use of the good does not reduce the availability to others but access can be restricted.