How Can the Market Demand for a Public Good Be

question 79

Multiple Choice

How can the market demand for a public good be determined?

• A)By adding up the total private benefits and external benefits that each quantity provides the citizens of a country.
• B)By adding up how much each citizen expects to consume at each possible price.
• C)By adding up how much each consumer is willing to pay for each unit of the public good.
• D)By estimating the value of the benefit that each unit provides and multiplying that by the number of consumers.

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Definitions:

Demographic Transition

A theory describing the transition from high birth and death rates to lower birth and death rates as a country develops from a pre-industrial to an industrialized economic system.

Demographic Transition

A model describing the transformation of birth and death rates from high to low levels in a society over time, typically associated with economic development.

Resource Demand

The requirement for raw materials, labor, and other inputs needed by businesses to produce goods and services.

Operating Costs

Expenses associated with the day-to-day functioning of a business, such as rent, utilities, and payroll.