Self Interest

question 171

Multiple Choice

Self interest

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

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Definitions:

Marginal Benefit

The additional satisfaction or utility derived by consuming or producing one more unit of a good or service.

Public Good

An item or service made available at no cost to everyone in society, delivered by public institutions, private organizations, or individuals without aiming for financial gain.

Marginal Cost

The cost of producing one additional unit of a good or service, a concept crucial for understanding economic decision-making and pricing strategies.

Positive Externalities

Benefits that result from a commercial activity experienced by others who are not directly involved in the transaction or activity.