SSC
GENERAL ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The benefit to each individual who uses the facility is greater than the cost.
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The benefits of the facility are greater for the society than for the individuals using it.
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The total benefits to society are greater than the total cost.
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The total cost is small for each individual taxpayer.
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Detailed explanation-1: -The two main criteria that distinguish a public good are that it must be non-rivalrous and non-excludable. Non-rivalrous means that the goods do not dwindle in supply as more people consume them; non-excludability means that the good is available to all citizens.
Detailed explanation-2: -A public good is a good or service available to all members of society. This includes infrastructure, law enforcement, national defense, and public health. Public goods are non-rivalrous and non-excludable. They can be used by anyone and everyone without diminishing the availability of the good or service.
Detailed explanation-3: -Which of the following explains how the government provides the optimal quantity of a public good? it compares the marginal benefit of an added unit of the good against the government’s marginal cost of providing it.