The Optimal Quantity of a Public Good Occurs Where the Marginal

question 22

True/False

The optimal quantity of a public good occurs where the marginal benefit of the citizen who has the highest preference for the good just equals the good's marginal cost.

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Definitions:

Statistical Inference

The process of drawing conclusions about a population's characteristics based on a sample drawn from it.

Z Statistic

A type of test statistic used in standard normal distribution to determine the number of standard deviations a data point is from the mean.

Multiple Logistic Regression

A statistical technique used to model the relationship between a dichotomous dependent variable and multiple independent variables.

Test Statistic

A standardized value computed from sample data during hypothesis testing, used to determine the p-value.