If the Marginal Benefit Received from a Good Is Equal

question 11

Multiple Choice

If the marginal benefit received from a good is equal to the marginal social cost of production, then:

• A)society's well-being can be improved if production increases.
• B)the market is producing an efficient quantity.
• C)the market is producing too much of the good.
• D)society's well-being can be improved if production decreases.

---

Definitions:

Disposable Income

Spendable and savable funds available to households after the deduction of income taxes.

Consumption

The act of using goods and services to satisfy needs and desires, often considered a primary component of an economy's activity.

Disposable Income

The funds left for households to manage spending and saving after income tax calculations.

Consumption

The part of personal income that is spent on goods and services rather than saved, influencing economic activity and demand.