-Paul and Paula Are the Only Members of Society

question 11

Multiple Choice

-Paul and Paula are the only members of society. The table above gives their marginal benefits from missile gunboats, a public good. Suppose the marginal cost of a missile gunboat is $8 million. What is the efficient quantity of missile gunboats?

• A) 3 boats
• B) 4 boats
• C) 2 boats
• D) 1 boat
• E) More information about whether the services provided by missile gunboats are rival or not is needed.

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Definitions:

Lobbyists

Individuals or groups who attempt to influence legislators or government officials on behalf of a specific cause or policy interest.

Federal Government

The national level of government, which has powers over matters that transcend individual states, territories, or provinces, as established by a constitution.

Democratic System

A form of government where power is vested in the hands of the people, either directly or through elected representatives, and where free and fair elections are conducted.

Interest Groups

Organizations or groups of people who advocate for their shared interests and try to influence public policy.