For Many Pure Public Goods Like Fireworks Displays, Weather Forecasts

question 56

Multiple Choice

For many pure public goods like fireworks displays, weather forecasts, and television broadcasts the marginal cost of serving one more consumer is ________, and the optimal quantity of the public good occurs when ________. 

• A)zero; provision is infinite.
• B)determined by average cost rather than marginal cost; price equals average cost.
• C)greater than the average cost; the government provides the good.
• D)zero; the marginal benefit of the public good equals zero.

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Definitions:

Foreign Aid

Financial assistance provided by one country to another, often aimed at promoting development and welfare.

Assets Abroad

Financial holdings or investments located outside one's home country, which can include bank accounts, real estate, stocks, and bonds.

Money Outflow

The movement of money out of a particular country, market, or economic sector, often to foreign countries or investments.

Balance of Payments

A comprehensive record of all monetary transactions between a country and the rest of the world over a specific period, including trade, financial transfers, and investments.