When There Is Overproduction of a Good

question 231

Multiple Choice

When there is overproduction of a good,

• A) the marginal benefit of the good exceeds its marginal cost.
• B) the marginal cost of the good exceeds its marginal benefit.
• C) the net benefit of producing extra units if the good is positive.
• D) the allocative efficiency is enhanced.

---

Definitions:

Lump Sum

An amount of money paid in a single payment, rather than in installments.

11% Return

A specific rate of return on an investment, denoting a gain of eleven percent on the original amount invested.

Annual Interest Rate

The percentage of interest that is charged or earned on an investment or loan over a one-year period.

Down Payment

An initial payment made when purchasing an item on credit, particularly real estate, often expressed as a percentage of the purchase price.