An Important Difference Between the Demand for a Private Good

question 101

Multiple Choice

An important difference between the demand for a private good and the demand for a public good is that

• A)individuals reveal their preferences for a public good, but they do not have to reveal their preferences for a private good.
• B)the resources used to provide public goods are common resources or government owned; the resources used to produce private goods are all privately owned.
• C)individuals reveal their preferences for a private good, but they do not have to reveal their preferences for a public good.
• D)the demand for a private good produces consumption externalities; the demand for a public good produces production externalities.

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Definitions:

Regression Model

A statistical technique used to estimate the relationship between a dependent variable and one or more independent variables.

SST

A measure of the total variation in a dataset that is the sum of squares total, often used in the context of regression analysis.

SSE

The overall sum of errors squared, highlighting the divergence between a model's predictions and real-world data observations.

Least Squares Estimate

A method in statistics for estimating the best-fitting line to a set of points by minimizing the sum of the squares of the differences between the observed values and the values provided by the model.