One Difference Between the Demand for a Private Good and That

question 66

Multiple Choice

One difference between the demand for a private good and that for a public good is that

• A) with a private good, each consumer chooses the quantity she wants to consume but with a public good, each consumer chooses the price she is willing to pay for a fixed quantity.
• B) with a private good, each consumer chooses the quantity she wants to consume but with a public good, everyone consumes the same quantity.
• C) with a private good, each consumer receives different amounts of benefit from consuming the product but with a public good, every consumer realizes the same amount of benefit from consuming the product.
• D) the marginal benefit from consuming the last unit of a public good always exceeds the marginal benefit from consuming the last unit of a private good because there are externalities in the consumption of the former.

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Definitions:

Legitimate Emergencies

Situations that are recognized as valid and urgent, requiring immediate attention and action.

Homeostatic/Medical Approach

A perspective on health and disease emphasizing the maintenance of internal balance and the prevention or curing of sickness through medical intervention.

Steady State

A condition in which all aspects of a system are in balance, leading to a situation that remains unchanged over time unless disrupted by external forces.

Natural Steadystate

The condition of equilibrium in a natural system where the system remains stable over time through self-regulation mechanisms.