Efficient Provision of a Public Good Occurs When

question 68

Multiple Choice

Efficient provision of a public good occurs when:

• A)the marginal cost and the marginal social benefit curves intersect; the marginal social benefit curve is the sum of all the individual demand curves for the good.
• B)the marginal cost and the marginal social benefit curves intersect; the marginal social benefit curve reflects the costs and benefits of producing the good.
• C)each individual votes on the amount that is to be spent on public goods.
• D)the free market is left to determine the social costs and benefits.

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Definitions:

Information Flow

The transfer or movement of information within a system or among various systems.

Protein Synthesis

The process by which cells build proteins based on the instructions encoded in DNA, consisting of transcription and translation stages.

DNA

Deoxyribonucleic acid, a molecule that carries the genetic instructions used in the growth, development, functioning, and reproduction of all known living organisms.

mRNA

Messenger RNA, a type of RNA that conveys genetic information from DNA to the ribosome, where it specifies the amino acid sequence of the protein products of gene expression.