To Decide Whether a Public Good Should Be Provided, the Government

question 169

Multiple Choice

To decide whether a public good should be provided, the government needs to know:
(i) what the costs to society of providing the good are
(ii) what the benefits to society of providing the good are
(iii) what price people pay for the good in an actual market

• A)(i) and (ii)
• B)(i) and (iii)
• C)(i) only
• D)(i), (ii) and (iii)

---

Definitions:

Negative Correlation

An interdependence between two variables marked by the rise of one and the decline of the other.

Scatterplot

A type of graph that shows the relationship between two continuous variables by plotting their values as coordinates on a two-dimensional plane.

Weak Relationship

Refers to a situation where the correlation between two variables is low, indicating that they have little association with each other.

Correlation

A measure of the relationship between two or more variables; the degree to which they change together.