An efficient distribution of goods requires that
A. everyone gets an equal share of each good.
B. marginal cost equal marginal utility for the last unit produced.
C. each person derives the same total utility from the good.
D. since tastes differ, every person pays a different price in accordance with different marginal utilities.
Answer: B
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The business cycle refers to
A) fluctuations in the level of real GDP around potential GDP. B) changes in the level of nominal GDP. C) changes in the level of the stock market. D) changes in the level of employment.
The average price of goods and services in the economy is also known as
A) the cost of living. B) the inflation rate. C) a market basket. D) the price level.
Refer to Figure 4-1. If the market price is $3.50, what is Kendra's consumer surplus?
A) $9.00 B) $7.50 C) $3.50 D) $0
Survey evidence from forex traders indicates support for the economic fundamental's impact on exchange rates:
a. in the short run. b. in the moderate run. c. only in the long run. d. not at all.