Efficient Production of a Public Good Requires

question 3

Multiple Choice

Efficient production of a public good requires

• A)that individuals pay for such goods according to benefits received.
• B)that each individual's MRS be equal to the RPT of public goods for private goods.
• C)that the sum of individuals' MRSs be equal to the RPT of public goods for private goods.
• D)that governments produce at the low point of the average cost curve for the public good.

---

Definitions:

Systematic Desensitization

A behavioral therapy technique that gradually exposes individuals to a feared stimulus to reduce the anxiety associated with it.

Stressful Stimulus

Any external or internal event or condition that causes stress in an individual, potentially leading to a physiological and psychological response.

Fear of Heights

An anxiety disorder characterized by an irrational and excessive fear of heights, also known as acrophobia.

Systematic Desensitization

A behavioral therapy technique used to reduce phobic responses and anxiety through gradual exposure to the feared object or situation combined with relaxation exercises.