Answer the Question on the Basis of the Following Information

question 12

Multiple Choice

Answer the question on the basis of the following information for a public good.P_a and P_b are the prices that individuals A and B are willing to pay for the last unit of a public good,rather than do without it.These people are the only two members of society. $\begin{array}{c}\begin{array}{c}\underline{\text {Q }}\\1 \\2 \\3 \\4 \\5\end{array}\begin{array}{c}\underline{\mathrm{Pa}_{\mathrm{a}} }\\\$ \\2\\1\\0\\0\end{array}\begin{array}{c}\underline{\mathrm{Pa}_{\mathrm{b}} }\\\$ 5 \\4 \\3 \\2 \\1\end{array}\end{array}$
Refer to the data.Suppose government has already produced 4 units of this public good.The amount individual B is willing voluntarily to pay for the 4^th unit is:

• A) $14.
• B) $5.
• C) $2.
• D) $0.

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Definitions:

S Factor

Also known as the "specific factor," it refers to specific mental abilities as opposed to general intelligence in psychometric testing.

Primary Mental Abilities

According to Thurstone, seven relatively distinct capabilities that singly or in combination are involved in all intellectual activities.

Charles Spearman

A British psychologist who contributed to the development of factor analysis and the concept of general intelligence, represented as the "g" factor.

Louis Thurstone

An influential psychologist best known for his contributions to psychometrics and the theory of multiple intelligences.