Public Goods Should Be Provided to the Point at Which

question 131

Multiple Choice

Public goods should be provided to the point at which the marginal cost of production equals:

• A)the maximum price any individual is willing to pay for that unit.
• B)the highest marginal benefit from any individual consumer of the good.
• C)zero.
• D)the sum of the individual marginal benefits from all consumers of that unit.

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Definitions:

Extended Contact Effect

The reduction of prejudice through indirect relationships, wherein knowing a member of an in-group has a friends in an out-group can lead to more positive attitudes towards that out-group.

Ingroup Favouritism

Behaviour that favours one’s own group over other groups.

Generalisation

The act or process of forming conclusions based on broad patterns, observations, or experiences that apply beyond specific instances.

Contact Hypothesis

A theory suggesting that under certain conditions, interpersonal contact is one of the most effective ways to reduce prejudice between majority and minority group members.