The Marginal Benefit Curve of a Public Good Is Calculated

question 167

Multiple Choice

The marginal benefit curve of a public good is calculated by ________ individual marginal ________ curves.

• A) averaging; cost/benefit
• B) horizontally summing; cost
• C) averaging; benefit
• D) vertically summing; benefit
• E) horizontally summing; benefit

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Definitions:

Benefits Principle

A taxation principle that charges individuals based on the benefits they receive from public services.

Gasoline Tax

A levied tax on gasoline sales, often used to fund transportation projects and environmental initiatives.

Benefits Principle

A taxation principle that suggests taxes should be levied according to the benefits received by the taxpayer from governmental services.

Security Fee

A charge imposed to cover the cost associated with ensuring the safety and security of a service or facility.