Suppose the Government Is Producing a Public Good

question 172

Multiple Choice

Suppose the government is producing a public good.If the marginal benefit of the last unit of a public good produced is greater than the marginal cost of that unit,to achieve the efficient amount of production,what should be done?

• A) The government should produce more units.
• B) The government should cease production.
• C) Private firms should take over the production and sale of the good.
• D) Nothing, because the government is already producing the efficient quantity of the public good.
• E) The government should produce fewer units.

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Definitions:

Kisspeptin

A chemical produced in the hypothalamus that combines with receptors in the hypothalamus to trigger a cascade of events in many parts of the brain and body, initiating puberty.

Cytokines

Small proteins released by cells, particularly those in the immune system, that affect the behavior of other cells and the regulation of immune responses.

Culpability

This term refers to the degree of responsibility or guilt for a fault or wrongdoing, often assessed in legal and moral contexts.

Mitigating Guilt

This involves actions or circumstances that decrease the severity of the feeling of guilt by providing explanations or justifications for the guilt-inducing behavior.