From the Perspective of Economists, Which Term Provides the Highest

question 99

Multiple Choice

From the perspective of economists, which term provides the highest degree of confidence for explaining economic behaviour?

• A)an economic principle or a law
• B)a fact
• C)a hypothesis
• D)an assumption

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Definitions:

Marginal Benefit

The additional satisfaction or utility that a person receives from consuming an additional unit of a good or service.

Marginal External Damages

Additional harm or cost imposed on society or a third party that is not accounted for by the producer or consumer of a good or service.

Marginal Social Cost

The total cost to society of producing an additional unit of a good or service, including both the cost to the producer and the cost to society of any environmental or other externalities.

Monopoly

Market with only one seller.