The Following Information Is for a Public Good

question 93

Multiple Choice

The following information is 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.Suppose the government has already produced 4 units of this public good.The amount individual B is willing to voluntarily pay for the 4^th unit is:

• A) $14
• B) $5
• C) $2
• D) $0

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Definitions:

China

A country in East Asia, the world's most populous nation, with a rich history, diverse culture, and rapidly growing economy.

American Conferees

Individuals from the United States who participate in formal meetings or conferences, often concerning politics, academics, or industries.

Containment Doctrine

A foreign policy strategy aimed at preventing the expansion of a hostile power or ideology, notably used by the United States during the Cold War to limit the spread of communism.