We Determine the Economy's Marginal Benefit Curve for a Public

question 16

Multiple Choice

We determine the economy's marginal benefit curve for a public good or service by

• A) dividing the sum of the marginal benefit of each member of society by the number of people in society.
• B) horizontally summing the individual marginal benefit curve of each member of society.
• C) multiplying the marginal benefits of each member of society.
• D) vertically summing the individual marginal benefit curve of each member of society.
• E) vertically summing individual firms' marginal cost curves.

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Definitions:

Aid to Families

Programs providing financial or other assistance to families, often targeting housing, healthcare, or income support.

Dependent Children

Individuals, typically under the age of 18, who rely on adults for financial support and care.

Excise Tax

Taxes applied to specific goods, services, or activities, either as a flat amount per unit or as a percentage of the price.

Direct and Indirect

Terms used to differentiate between costs, taxes, or subsidies that are explicitly linked to the production or sale of a good (direct) and those that are not directly linked but influence economic outcomes (indirect).