The Efficient Output Level of a Public Good Occurs Where

question 43

Multiple Choice

The efficient output level of a public good occurs where the

• A)greatest number of free riders occurs.
• B)marginal cost of producing the last unit is equal to the marginal benefit realised by consumers.
• C)total cost of production is affordable.
• D)marginal cost of production is at its lowest.

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Definitions:

Nontaxable Social Security

Portions of Social Security benefits that are not subject to federal income tax under certain conditions.

AGI

Adjusted Gross Income; a measure of income calculated from your gross income and used to determine how much of your income is taxable.

Child and Dependent Care Credit

A tax credit in the U.S. for qualified expenses paid for the care of children under 13 or disabled dependents, enabling the taxpayer to work or look for work.

Qualified Day Care

A childcare facility meeting specific regulatory standards and qualifications, which expenses for may be deductible or eligible for specific tax credits.