An Important Difference Between the Demand for a Private Good

question 101

Multiple Choice

An important difference between the demand for a private good and the demand for a public good is that

• A)individuals reveal their preferences for a public good, but they do not have to reveal their preferences for a private good.
• B)the resources used to provide public goods are common resources or government owned; the resources used to produce private goods are all privately owned.
• C)individuals reveal their preferences for a private good, but they do not have to reveal their preferences for a public good.
• D)the demand for a private good produces consumption externalities; the demand for a public good produces production externalities.

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Definitions:

Cohen and Colleagues

A reference to a group of researchers led by psychologist Sheldon Cohen, known for their studies on stress, health, and social support.

Response Strength

The extent or intensity of an organism's reaction to a specific stimulus or series of stimuli, often used in behaviorism to measure learning or conditioning.

Self-modification

Refers to the process of altering one's behavior, thoughts, or emotions in a conscious effort to improve oneself.

Positive Reinforcement

The strengthening of a response (increases in frequency) because it is followed by the arrival of a (presumably) pleasant stimulus.