"There Can Be Too Much of a Good Thing

question 31

Multiple Choice

"There can be too much of a good thing." This statement suggests that

• A)choices made in self-interest cannot be applied to many economic decisions.
• B)a good may be produced to the point where its marginal cost exceeds its marginal benefit.
• C)certain goods and services such as education and health care are inherently desirable and should be produced regardless of costs and benefits.
• D)a good may be produced to the point where its marginal benefit exceeds its marginal cost.
• E)a good may be produced to the point where its marginal benefit is equal to its marginal cost.

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Definitions:

Transform Resources

The process of converting resources (labor, materials, capital) into goods and services more valued by society.

Market Economy

A market economy is a system where the supply and demand for goods and services determine prices and production levels, operating with minimal government intervention.

Entrepreneurs

Individuals who initiate, manage, and assume the risks of starting and running a new business venture.

Organizes And Manages

refers to the process of structuring, coordinating, and overseeing resources and activities to achieve specific objectives efficiently and effectively.