A Public Good Will

question 43

Multiple Choice

A public good will:

• A) be efficiently provided by the free market as long as its total benefits exceed its total costs.
• B) be efficiently provided by the free market as long as its marginal benefits exceed its marginal costs.
• C) be provided in less than efficient quantities by the free market.
• D) be provided in efficient quantities by voluntary contributions.

---

Definitions:

Face Validity

The degree to which a measurement device appears to accurately measure a variable.

Criterion Validity

The extent to which a measure is correlated with, or predictive of, an outcome of interest, often assessed through correlations with other known indicators.

Divergent Validity

A measure of validity that ensures an assessment does not strongly correlate with tests from unrelated constructs, thus proving its specificity.

Operational Definition

Definition of a concept that specifies the method used to measure or manipulate the concept.