Assume There Are Two People in a Society

question 163

Multiple Choice

Assume there are two people in a society. Person A is willing to pay $140 to have one unit of a public good produced and Person B is willing to pay $160 to have one unit of a public good produced and $140 to have two units produced. As a result, society would be willing to pay a price of ________ of this public good.

• A) $300 for 1 unit
• B) $200 for 3 units
• C) $200 for 1 unit
• D) $160 for 5 units

---

Definitions:

Consumer Goods

Products that are purchased for consumption by the average consumer.

Discouraged Workers

Individuals who are not actively seeking employment because they believe no jobs are available for them.

Frictionally Unemployed

Individuals who are temporarily out of work while moving between jobs or looking for their first jobs.

Voluntarily Quits

The act of an employee choosing to leave their job out of their own will, often for reasons such as a better opportunity, personal reasons, or dissatisfaction with the current job.