When an economist says that there is "too much of a good thing," the economist is suggesting that:
A. scarcity is not a problem.
B. the marginal cost of the thing is less than the marginal benefit.
C. wants are limited.
D. the marginal benefit of the thing is less than the marginal cost.
Answer: D
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There are four lighthouses on the island of Sand. If this is the efficient quantity of lighthouses, ________
A) the marginal social benefit of the fourth lighthouse equals its marginal social cost B) total social benefit is zero C) marginal social benefit minus marginal social cost is a maximum D) Both answers A and C are correct.
How has economist Robert Fogel explained that economic growth is connected to life expectancy? Based on this connection, in what country would you expect to have a longer life expectancy, the United States or India? Explain
What will be an ideal response?
Maddy purchases 2 pounds of beans and 3 pounds of rice per month when the price of beans is $2 per pound. She purchases 1 pounds of beans and 4 pounds of rice per month when the price of beans is $3 per pound. Maddy's cross-price elasticity of demand for beans and rice is
a. 0.71, and they are substitutes. b. -0.71, and they are complements. c. 1.4, and they are substitutes. d. -1.4, and they are complements.
When tariffs are imposed, ______.
a. foreign trade expands, and domestic prices are lower b. import producers benefit, and domestic producers suffer c. gains to producers are offset by losses to consumers d. benefits to consumers make up for producers’ losses