A Public Good Is a Good or Service for Which

question 188

Multiple Choice

A public good is a good or service for which exclusion is:

• A)possible and which is rival in consumption.
• B)possible and which is nonrival in consumption.
• C)not possible and which is rival in consumption.
• D)not possible and which is nonrival in consumption.

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Definitions:

Consumption Choice

The decision made by consumers on how to allocate their income among various goods and services to maximize their utility.

Marginal Utility

The extra pleasure or benefit gained by a consumer from using an additional unit of a product or service.

Utility Maximization

Utility maximization is a principle in economics that suggests consumers aim to get the greatest satisfaction possible from their disposable income, choosing the mix of goods and services that maximizes their utility.

Px

Often used as a notation for the price of a good x in economic models.