If someone produced too much of a good, this would suggest that
A. the good was produced to the point where its marginal benefit exceeded its marginal cost.
B. certain goods and services such as education and health care are inherently desirable and should be produced regardless of costs and benefits.
C. rational choice cannot be applied to many economic decisions.
D. the good was produced past the point where its marginal cost exceeded its marginal benefit.
Answer: D
You might also like to view...
If the United States imports goods and services for a total of $45 billion, exports goods and services for a total of $40 billion, records $4 billion as net interest and zero as net transfers, then the U.S. current account balance is
A) $1 billion. B) -$1 billion. C) $89 billion. D) zero. E) $81 billion.
In the foreign exchange market, an increase in the exchange rate leads to
A) an increase in the quantity of dollars demanded and no movement along the demand curve for dollars. B) an increase the quantity of dollars supplied and a movement along the supply curve of dollars. C) an increase the quantity of dollars supplied and no movement along the supply curve of dollars. D) a decrease the quantity of dollars supplied and a movement along the supply curve of dollars. E) an increase in the quantity of dollars demanded and a movement along the demand curve for dollars.
If the interest rate is 5 percent, what is the present value of $100 that will be received 3 years from now?
A) $90.70 B) $86.38 C) $115.00 D) $13.62
During a sustained economic expansion,
a. the rate of unemployment will generally fall and the employment/population ratio will generally rise. b. the rate of unemployment will generally rise and the employment/population ratio will generally fall. c. both the rate of unemployment and the employment/population ratio will generally decline. d. both the rate of unemployment and the employment/population ratio will generally rise.