"There Can Be Too Much of a Good Thing

question 76

Multiple Choice

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

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

---

Definitions:

Estimated Costs

Costs that are predicted based on historical data, trends, and analyses, used for budgeting, planning, and decision-making purposes.

Cost To Sell

The expenses directly associated with the disposal of an asset, excluding financing costs and income taxes.

Fair Value Movements

describes changes in the fair value of an asset or liability over time, which may be recognized in profit or loss or other comprehensive income.