Question

47.

To maximize social welfare, the optimal quantity of a public good to provide should be determined through the use of

private markets.

the judicial system.

cost-benefit analysis.

public survey.

the political process.

28.

Which of the following characteristics best defines a common-resource good?

nonrival and nonexcludable

nonrival and excludable

rival and excludable

rival and nonexcludable

a good that is never produced by the government

Answer 1

47) To maximize social welfare, the optimal quantity of a public good to provide should be determined through the use of

Cost benefit analysis

Option(C)

The cost benefit analysis will analyze and compare the social benefit and social cost of the given good and its social optimum level.

48) A common resource good is non excludable as no one can be prevented from from using the good and rival in consumption as consumption of the good by one person will decrease the ability of others from consuming the good example- open fishing grounds.

Option(D)