In a "Yes/No" Question,50 Percent "Yes" and 50 Percent "No

question 6

True/False

In a "Yes/No" question,50 percent "Yes" and 50 percent "No" shows less variability than does 90 percent "Yes" and 10 percent "No."

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Definitions:

Socially Optimal

A state or outcome in which the total benefits to society are maximized, taking into account all costs and benefits, both private and external.

Artificially Scarce Good

A good that is made scarce through artificial means such as through intellectual property rights or monopoly pricing, despite its capacity for abundant supply.

External Cost

An uncompensated cost that an individual or firm imposes on others; also known as negative externality.

Marginal Costs

The additional financial burden incurred from producing another unit of a product or service.