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:

Divinely Sanctioned

Justified, supported, or approved by a deity or religious authority, often used to legitimize actions, leaders, or laws.

James Oglethorpe

A British military officer, member of Parliament, and philanthropist who founded the colony of Georgia in America in 1733 as a place for debtors and the poor.

Founding Georgia

The establishment of the colony of Georgia in 1733 by James Oglethorpe, intended as a place for debtors and poor individuals, and as a buffer against Spanish expansion from Florida.

Spanish Florida

A territory that was controlled by Spain from 1513 until 1821, covering most of what is currently the state of Florida and parts of the southeastern United States.