The Marginal Benefit of a Public Good Is the

question 175

Multiple Choice

The marginal benefit of a public good is the

• A) sum of the marginal benefits of all the individuals at each quantity.
• B) marginal benefit of the individual person who places the lowest value on the good, multiplied by the number of people in the economy.
• C) marginal benefit of the individual person who places the highest value on the good, multiplied by the number of people in the economy.
• D) benefit of the last person's consumption.
• E) average of the marginal benefits of all the individuals at each quantity.

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Definitions:

Weber's Law

A principle in psychology that states the smallest change in a stimulus, such as weight or brightness, that can be detected is a constant proportion of the stimulus level.

Constant Proportion

A principle that, in a specific context, a relationship between certain quantities remains consistent, irrespective of changes in other variables.

Absolute Threshold

The minimum intensity of a stimulus that one can detect 50% of the time, which varies across different sensory modalities.

Statistical Average

A value that signifies the central or typical value in a set of data, calculated by dividing the sum of all values by the number of values.