One Difference Between the Demand for a Private Good and That

question 18

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 realises 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:

Mortgage Rate

The interest rate charged on a mortgage loan, which can be fixed or variable, determining the amount of interest the borrower pays over the life of the loan.

Seasonal Variation

Fluctuations in data or occurrences that happen at specific times of the year, often influenced by the seasons.

Long-Term Trend

The overall direction in which data moves over a significant period, indicating a persistent increase, decrease, or stability.

Forecast Accuracy

A measure of how close the forecasted values are to the actual values, often used in evaluating the performance of forecasting models.