Which of the Following Is True in a Lindahl Equilibrium

question 29

Multiple Choice

Which of the following is true in a Lindahl equilibrium for cooperative supply of a pure public good?

• A)The sum of the tax shares per unit paid by each consumer is equal to the marginal social cost of the public good.
• B)The sum of the tax shares per unit paid by each consumer is equal to the marginal social benefit of the good.
• C)The sum of the tax shares per unit paid by each consumer is maximized.
• D)Both (a) and (b) are correct.

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Definitions:

Baldwin

Referring to James Baldwin, an American writer and social critic known for his essays on the complexities of racial, sexual, and class distinctions in Western societies.

Catholic Participants

Individuals who practice the Catholic faith and may be involved in research or activities related to their religious beliefs.

Scowling

A facial expression characterized by lowering the eyebrows and frowning, often indicating displeasure, anger, or concentration.

Disproportionately Positive

This term may refer to an overly or excessively positive assessment or outcome relative to expectations or norms, but without context, its specific meaning can be unclear.