The Efficient Quantity of a Public Good Occurs When the Marginal

question 35

True/False

The efficient quantity of a public good occurs when the marginal cost of providing that good equals the sum of the marginal benefits to all individuals.

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Definitions:

Contingent

Dependent on certain conditions or events which must occur before an agreement or commitment is fulfilled.

Temporary Insurance

Short-term insurance coverage provided to an individual or entity until a permanent insurance policy is issued.

Binder

A written, temporary insurance policy.

Policy

In insurance law, a contract for insurance coverage. The policy spells out the precise terms and conditions as to what will and will not be covered under the contract.