Suppose That the Marginal Social Benefit from Another Unit of a Public

question 14

Multiple Choice

Suppose that the marginal social benefit from another unit of a public good is less than the marginal social cost of producing it. Then

• A) the principle of minimum differentiation means that production should be decreased.
• B) the number of free riders is at its efficient amount.
• C) less of the product should be produced because its provision exceeds the efficient level.
• D) more of the product should be produced because its provision is less than the efficient level.

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Definitions:

Native American Tribes

Indigenous peoples in the United States with distinct cultures, languages, and histories, recognized as sovereign nations by the federal government.

Windings

Coils of wire in electrical devices, such as motors and generators, that generate magnetic fields when current flows through them or induce current when they rotate in a magnetic field.

Voltages

The difference in electric potential between two points, expressed in volts.