At the Optimal Quantity of a Public Good

question 238

Multiple Choice

At the optimal quantity of a public good,

• A)marginal benefit exceeds marginal cost by the greatest amount.
• B)total benefit equals total cost.
• C)marginal benefit equals marginal cost.
• D)marginal benefit is zero.

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Definitions:

Brain Drain

The tendency for talented people from developing countries to become educated in a developed country and remain there after graduation.

Developing Countries

are nations with a lower living standard, underdeveloped industrial base, and low Human Development Index (HDI) compared to more developed countries.

Malnutrition

A condition that results from eating a diet in which one or more nutrients are either not enough or are too much, causing health problems.

Productivity

A measure of the efficiency of a person, machine, factory, system, etc., in converting inputs into useful outputs.