We Determine the Economy's Marginal Benefit Curve for a Public

question 49

Multiple Choice

We determine the economy's marginal benefit curve for a public good or service by

• A) vertically summing the individual marginal benefit curves of each member of society.
• B) horizontally summing the individual marginal benefits curves of each member of society.
• C) multiplying the marginal benefits of each member of society.
• D) dividing the sum of the marginal benefits of each member of society by the number of people in society.
• E) vertically summing the individual firm's marginal cost curves.

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Definitions:

Capital Acquisitions Ratio

A measure of a company’s ability to finance its investment in fixed assets through net income, indicating how much of the company’s capital is being acquired through profits.

Net Income

The amount of profit remaining after all operating expenses, taxes, and interest are deducted from total revenue.

Cash Investment

Funds that are invested in assets that can be quickly turned into cash, or the act of putting money into financial schemes, shares, property, or a commercial venture with the expectation of achieving a profit.

Equipment Sale

The process of selling off business-owned equipment, either to upgrade to newer assets or to liquidate assets for cash.