No Individual Is Willing to Pay for the Efficient Quantity

question 201

Multiple Choice

No individual is willing to pay for the efficient quantity of a public good because the marginal benefit to an individual _____ the marginal social benefit.

• A)equals
• B)exceeds
• C)is less than
• D)may be equal to or greater than

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Definitions:

Satisfaction

A feeling of fulfillment or contentment that comes from achieving one's goals or meeting one's needs and desires.

Civilian Goods

Products and services intended for use by the general public rather than for military purposes.

Real Cost

The total cost of producing a good or service, including the opportunity cost of alternative uses of resources and inputs.

Wartime Shortages

Periods during war when there is a lack of availability of essential goods and resources due to increased demand and disrupted supply chains.