Resource Use Is Allocatively Efficient

question 395

Multiple Choice

Resource use is allocatively efficient

• A) when marginal benefit equals marginal cost.
• B) when the maximum possible quantity is being produced.
• C) whenever marginal benefit exceeds marginal cost.
• D) whenever marginal cost exceeds marginal benefit.

---

Definitions:

Hippocampus

A complex structure deep within the brain, behind the hypothalamus, that plays an important role in memory processes.

Basal Ganglia

A group of structures in the brain involved in processing information on movement and coordination as well as various other cognitive and emotional activities.

Hypothalamus

A complex structure near the lower center of the brain that has direct connections to many other parts of the brain and is involved in the production of psychologically important hormones; thought to be important for mood and motivation.

Electroencephalography (EEG)

A technique for measuring the brain’s electrical activity by placing electrode sensors on the outside of the skull.