The Market Demand for a Public Good Can Be Determined

question 6

Multiple Choice

The market demand for a public good can be determined by

• A)adding up the total private benefits and external benefits that each quantity provides the citizens of a country.
• B)adding up how much each citizen expects to consume at each possible price.
• C)adding up how much each consumer is willing to pay for each unit of the public good.
• D)estimating the value of the benefit that each unit provides and multiplying that by the number of consumers.

---

Definitions:

Cash Receipts

The total amount of money received by a business during a specific period, including cash sales, collected receivables, and any other cash inflows.

Statement Of Cash Flows

A financial statement that consolidates information about all the money a company gets from its regular operations and outside investments, alongside the money spent on business operations and investments within a certain timeframe.

Investing Activities

Part of a company's cash flow statement that shows the amount of money spent or generated from various investment-related activities in non-current assets.

Contingent Activities

Actions or outcomes that are possible and might affect a project or transaction but their occurrence is dependent on future events.