When the Efficient Quantity of Output Is Produced

question 59

Multiple Choice

When the efficient quantity of output is produced,

• A) the sum of consumer surplus and producer surplus is maximised.
• B) the marginal social benefit of the last unit produced is equal to the marginal social cost of the last unit produced.
• C) resources are used in the activities in which they are most highly valued.
• D) All of the above answers are correct.

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Definitions:

Unskilled Agricultural

Work in the agricultural sector that requires minimal training or skills, often involving basic tasks such as planting, watering, and harvesting crops.

Free Soil Party

Political organization formed in 1848 to oppose slavery in the territory acquired in the Mexican War; nominated Martin Van Buren for president in 1848. By 1854 most of the party’s members had joined the Republican Party.

Homesteads

Small-scale agricultural estates typically run by a family or individual.

Tejanos

People of Mexican heritage who live in Texas, historically established prior to the state's independence from Mexico.