At the Current Level of Output, the Marginal Social Benefit

question 48

Multiple Choice

At the current level of output, the marginal social benefit from a slice of pizza is less than the marginal social cost of producing a slice of pizza. Resources will be used more efficiently if ________ slices of pizza are produced and ________ other goods are produced.

• A) fewer; fewer
• B) more; fewer
• C) more; more
• D) fewer; more

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Definitions:

Economy Recovers

The process by which an economy returns to a state of growth or improves in its indicators after a period of recession or decline.

Trade Deficit

Occurs when a country's imports exceed its exports during a given time period, indicating an outflow of domestic currency to foreign markets.

Imports and Exports

Economic transactions involving the buying of goods and services from foreign countries (imports) and selling domestically produced goods and services to foreign countries (exports).

Eurozone

The 19 nations (as of 2019) of the 28-member (as of 2019) European Union that use the euro as their common currency. The eurozone countries are Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain.