Refer to the Supply and Demand Graph for a Public

question 101

Multiple Choice

Refer to the supply and demand graph for a public good.Which line segment would indicate the amount by which the marginal benefit of this public good is greater than the marginal cost?

• A)de
• B)da
• C)ef
• D)ab

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Definitions:

Risk Averse

A description of an individual's or entity's preference to avoid risk, favoring certainty in investment or economic decisions.

Expected Utility

A concept in economics that calculates the utility expected from different outcomes, taking into account their probabilities.

Total Utility

The complete contentment derived from the consumption of a specific amount of a product or service.