Self-Interest

question 92

Multiple Choice

Self-interest

• A) occurs only when wants exceed available resources.
• B) reflects choices that are best for society as a whole.
• C) reflects choices that are best for the individual who makes them.
• D) cannot be used to determine how goods are produced.
• E) has nothing to do with determining what goods are produced

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Definitions:

Law of Increasing Cost

The principle that as production of a good expands, the opportunity cost of producing an additional unit rises.

Marginal Output

Marginal Output is the additional quantity of output that is produced by utilizing one more unit of a certain input, holding all other inputs constant, used to assess productivity improvements or decreases.

Diseconomies of Scale

Diseconomies of scale occur when a company or business grows so large that the costs per unit increase, opposite of economies of scale where costs decrease with increasing production.

Economic Growth

A rise in the output of goods and services within an economy over a specific time frame.