Resources are efficiently utilized when production is such that marginal social benefit
A) is equal to marginal social cost.
B) exceeds marginal social cost by as much as possible.
C) is less than marginal social cost.
D) None of the above because efficiency has to do with property rights and has nothing to do with marginal social benefit or marginal social cost.
A
You might also like to view...
Refer to the figure below.________ inflation will eventually move the economy pictured in the diagram from short-run equilibrium at point ________ to long-run equilibrium at point ________, 
A. Rising; B; C B. Falling; A; C C. Falling; A; B D. Rising; A; C
Which game does the Cournot model most resemble and why?
a. the Battle of the Sexes because firms need to coordinate their outputs. b. the Battle of the Sexes because firms disagree on which outcome is best. c. the Prisoners Dilemma because firms don't maximize joint payoffs in equilibrium. d. the Prisoners Dilemma because firms play dominant strategies.
Which of the following is true?
a. The GDP gap is the difference between full-employment real GDP and actual real GDP. b. All of the answers are correct. c. We desire economic growth because it increases the nation's standard of living. d. Discouraged workers are a reason critics say the unemployment rate is understated. e. Economic growth is measured by the annual percentage increase in a nation's real GDP.
If a natural disaster were to cause a negative long-run supply shock to the economy, once the economy adjusts, the new equilibrium will be at a:
A. higher price level and lower level of output. B. lower price level and lower level of output. C. higher price level and higher level of output. D. lower price level and higher level of output.