At the Market Equilibrium, When Efficiency Is Attained, the Marginal

question 27

Multiple Choice

At the market equilibrium, when efficiency is attained, the marginal benefit ________ the marginal cost.

• A) is equal to
• B) is equal to the marginal deadweight loss which is equal to
• C) has no necessary relationship with
• D) is less than
• E) is greater than

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Definitions:

Inflation

A persistent upsurge in the average cost of goods and services across an economy over time.

Unemployment

The situation when people who are willing to work at current wage rates cannot find jobs.

Aggregate Demand

Aggregate demand represents the total quantity of all goods and services demanded by the economy at various price levels, in a given period of time.

Phillips Curve

A financial principle illustrating a reverse correlation between unemployment levels and inflation rates within an economy.