Scenario: Ben and Nick Two Individuals, Ben and Nick, Are

question 66

Multiple Choice

Scenario: Ben and Nick Two individuals, Ben and Nick, are the only members of a hypothetical community.They have revealed the marginal private benefits they each receive from a public good whose marginal social benefit is known.In addition, the marginal social cost (MSC) of the public good is known and is constant.
(Scenario: Ben and Nick) Refer to the information and figure in the scenario Ben and Nick.At
Q₂, the marginal social benefit from the last unit of the public good:

• A)is equal to the marginal social cost.
• B)is equal to the sum of P₄ + P₃.
• C)is the optimal level of public good provision.
• D)does not benefit Nick very much.

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Definitions:

Socialism

A political and economic theory advocating collective or governmental ownership and administration of the means of production and distribution of goods.

Carlos Montezuma

An influential Yavapai doctor and activist in the early 20th century, advocating for the rights and sovereignty of Native American people.

Historical Significance

The importance or impact of an event, person, or invention in history and how it influences the present or shapes the future.