If a Public Good Provides Social Benefits That Are Greater

question 161

True/False

If a public good provides social benefits that are greater than its costs, then the majority of voters would always vote in favor of producing the good.

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Definitions:

Labour Rate Variance

The difference between the actual cost of labor and the standard or expected cost.

Standard Cost Per Bag

A pre-determined cost estimate for producing or purchasing a single unit of product, in this context, a bag.

Direct Material

Raw materials that are directly traceable to the manufacturing of a product and constitute a significant portion of the production cost.

Direct Labour

The workforce directly involved in the manufacturing of goods or provision of services, whose wages are directly associated with specific products or services.