If at the Quantity Determined by Private Costs and Benefits

question 188

Multiple Choice

If at the quantity determined by private costs and benefits, the marginal social benefit of a public good is greater than the marginal social cost of providing the good:

• A) the private market will best determine how much of the good will be provided and to whom.
• B) a community will best provide the good.
• C) the community will not provide the good.
• D) free riding will not occur, so the private market will provide the socially optimal amount.

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Definitions:

Interest Rates

The percentage charged on the total amount borrowed or paid on investment, typically expressed annually.

Notes

Financial statements’ supplementary information, detailing the specific accounting policies, methodologies, and any additional information required for a full understanding of the financial position and performance.

Loans

Money lent to individuals, businesses, or other entities with the expectation of repayment with interest.

Equal Instalment Loans

Loans that are paid back in equal periodic payments, typically including both principal and interest components.