To Determine the Efficient Quantity of a Public Good to Supply

question 118

Multiple Choice

To determine the efficient quantity of a public good to supply,

• A) the private firms that will produce the good each produce the exact same quantity.
• B) marginal benefit and marginal cost are equated, the same as is done to determine the efficient quantity of a private good.
• C) total benefit is equated to total cost, the same as is done to determine the efficient quantity of a private good.
• D) politicians use the principle of maximum differentiation.
• E) marginal benefit must exceed marginal cost by as much as possible.

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Definitions:

Paralyzed

The state of being unable to move or function in one or more parts of the body, usually as a result of illness or injury to the nervous system.

Move Eyes

The action of changing the direction of gaze by shifting the position of the eyeballs within the ocular orbit.

Induced Motion

The perception of movement in a stationary object due to the movement of the surrounding frame of reference.

Stationary Train

A train that is not moving or is designed to remain in one place.