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The Table Below Shows the Marginal Benefit and Marginal Cost

Question 122

Multiple Choice

The table below shows the marginal benefit and marginal cost of purchasing an additional unit of 3 different public goods.  Mar ginal benefit  Marginal cost  Total spending an the public  Public pood 1 $20$20$1,500 Public pood 2 $15$25$800 Public pood 3 $10$5$700\begin{array} { | c | c | r | r | } \hline & \text { Mar ginal benefit } & \text { Marginal cost } & { \text { Total spending an the public } } \\\hline \text { Public pood 1 } & \$ 20 & \$ 20 & \$ 1,500 \\\hline \text { Public pood 2 } & \$ 15 & \$ 25 & \$ 800 \\\hline \text { Public pood 3 } & \$ 10 & \$ 5 & \$ 700 \\\hline\end{array}  
Total economic surplus could be increased by reallocating total spending away from


A) public good 2 toward public good 3.
B) public good 3 toward public good 1.
C) public good 2 toward public good 1.
D) public good 1 toward public good 3.

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