In Deciding Whether a Good Is a Public Good, One

question 410

Multiple Choice

In deciding whether a good is a public good, one must determine the

• A)incomes of those who benefit from the good.
• B)value of the external benefits that accrue to resource owners.
• C)excludability of the good.
• D)All of the above are correct.

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Definitions:

Aggregate Demand Curve

A curve that represents the total demand for all goods and services in an economy at different price levels, holding all else constant.

Price Level

An index that measures the average prices of goods and services within an economy over a period of time.

Aggregate Quantity Demanded

The total quantity of a good or service that consumers are willing and able to purchase at a given price level in a given market.

Classical Economists

Economic theorists from the 18th and 19th centuries, including figures like Adam Smith, David Ricardo, and John Stuart Mill, who focused on the idea of free markets, self-regulating economies, and the importance of competition.