An Efficient Level of Provision of a Public Good Is

question 56

Multiple Choice

An efficient level of provision of a public good is achieved when

• A)the cost of providing an extra unit of the good is equal to the sum of the valuations of all consumers for that unit.
• B)the cost of providing an extra unit of the good is equal to the valuation of each consumer of the extra unit.
• C)the cost of providing an extra unit of the good is equal to the price of the good.
• D)voters are satisfied that an adequate amount of the good is being produced.
• E)the valuation of each consumer for the last unit of the good produced is zero.

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Definitions:

Nitrites

Compounds containing the nitrite ion, NO2−, often used in food preservation and potentially harmful in high concentrations.

Bicarbonate

A bicarbonate ion (HCO3-) or a salt containing it, which acts as a buffer to maintain the pH balance in blood and other fluids.

Greenhouse Effect

Reradiation of solar heat toward the Earth, caused by an atmosphere that allows the sun’s rays to pass through, but traps the heat in the same manner as the glass of

Hydrological Cycle

The continuous movement of water on, above, and below the surface of the Earth, including processes like evaporation, condensation, and precipitation.