PPSCFPSCNTSPakistan govt jobs
- Subject
- Public Goodseconomics-mcqs › public-goods
- Published
- 1 Jun 2019
- Last updated
- 28 May 2026
Explanation
The government should require helmets if the monetary value assigned to a human life exceeds the cost-effectiveness threshold. Since helmets reduce fatality risk by 0.1% (0.3% - 0.2%) at a cost of Rs 5000, the value of a statistical life must be at least Rs 500,000 for the mandate to be efficient.
More Public Goods MCQs
Practice related questions from the same subject.
- 1.What term describes a good from which individuals can be prevented from accessing or using it?
- 2.Which of the following best illustrates a common resource?
- 3.Which type of good is impacted by a negative externality in a way that reduces market efficiency?
- 4.Which type of good does a positive externality influence market efficiency similarly to?
- 5.Who is described as a free rider in economic terms?
- 6.Why do private markets struggle to supply public goods effectively?
- 7.How would you classify a product supplied by a natural monopoly in terms of rivalry and excludability?
- 8.Which of the following best describes a public good?
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