If the Marginal Benefit Received from a Good Is Greater

question 229

Multiple Choice

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

• A)society's well-being can be improved if production increases.
• B)society's well-being can be improved if production decreases.
• C)society's well-being cannot be improved by changing production.
• D)the market is producing too much of the good.

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Definitions:

Motivation

The process that initiates, guides, and maintains goal-oriented behaviors, often driven by needs, desires, and goals.

Law of Effect

A psychological principle stating that behaviors followed by positive outcomes are likely to be repeated, while those followed by negative outcomes are less likely to be repeated.

Skinner

B.F. Skinner, an American psychologist and behaviorist, well-known for his work in operant conditioning and behavior analysis.

Pavlov

A psychologist known for his work on classical conditioning, demonstrating how stimuli can trigger conditioned responses.