The Marginal Benefit of a Good or Service

question 31

Multiple Choice

The marginal benefit of a good or service

• A) increases as more is consumed.
• B) decreases as more is consumed
• C) remains constant as more is consumed.
• D) decreases as less is consumed.

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Definitions:

Low Opportunity Cost

A situation where the cost of forgoing the next best alternative is relatively minimal.

Productive Activity

An action or process that leads to the creation of goods or services which have value and contribute to the economy.

Law of Comparative Advantage

The principle that countries gain by producing goods and services for which they have a lower opportunity cost compared to other countries.

Specialization

A strategy where individuals or entities focus on producing a limited range of goods or services, enhancing efficiency and expertise in their domain.