(Figure: Pancakes and Cereal I) at Point G, the Marginal

question 91

Multiple Choice

(Figure: Pancakes and Cereal I) At point G, the marginal cost of a pancake is 50 cents and the marginal cost of a bowl of cereal is also fifty cents. At this point, consumers are willing to trade 2 bowls of cereal for an additional pancake. Which of the following statements is TRUE?

• A) The economy is not allocating its inputs efficiently.
• B) The economy is not achieving output efficiency because the MRS is less than the MRT.
• C) The economy is achieving output efficiency because the MRT equals 1.
• D) The economy is not achieving output efficiency because the MRS is greater than the MRT.

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Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.