If Good X Is Available Free of Charge, Then

question 392

Multiple Choice

If good x is available free of charge, then

• A)good x must be provided by nature.
• B)good x must be provided by the government.
• C)the private market cannot ensure an efficient allocation of resources in the market for good x.
• D)government policy is incapable of increasing total surplus in the market for good x.

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Definitions:

Total Utility

The total satisfaction or benefit received by consuming a specific quantity of a good or service.

Units of Utility

A measure of satisfaction or pleasure that a consumer receives from consuming a product or service.

Utility

In economics, a measure of satisfaction or happiness that a consumer derives from the consumption of goods and services.

Satisfaction

The fulfillment of one's needs or the pleasure derived from consuming goods or services.