The Reason Why We Sum the Demand Curves of Individual

question 27

Multiple Choice

The reason why we sum the demand curves of individual consumers vertically rather than horizontally in a public goods market is that

• A) the willingness to pay in a public good market is smaller than that in a standard market.
• B) individual consumers are unlikely to be willing to pay enough to cover the marginal cost of production of a public good.
• C) the marginal social benefit of the X^th unit includes all consumers' marginal social benefits because the public good is non-exclusive and non-rival.
• D) the concept of quantities is meaningless in the case of public goods.

---

Definitions:

Rogers

Refers to Carl Rogers, a prominent psychologist known for developing person-centered therapy and contributions to humanistic psychology.

Metamotivation

A concept in psychology that refers to higher-level motivations which go beyond basic needs, emphasizing self-actualization and personal growth.

Deprivation Needs

Basic human needs that must be fulfilled to prevent discomfort or harm, such as food, water, and sleep; derived from the concept in Maslow's hierarchy of needs that when these are unmet, individuals are motivated to satisfy them.

Self-Actualization

The actualization or achievement of one's skills and possibilities, seen as a motivation or necessity found in every person.