If the Marginal Benefit of a Good Exceeds Its Marginal

question 146

Multiple Choice

If the marginal benefit of a good exceeds its marginal cost

• A) we've achieved efficient resource use.
• B) we should produce more to achieve the allocatively efficient use of resources.
• C) we should produce less to achieve the allocatively efficient use of resources.
• D) we cannot tell if more or less should be produced to achieve the allocatively efficient use of resources.

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Definitions:

Post-Closing Trial Balance

A list of all accounts and their balances after closing entries are made, verifying the equality of debits and credits.

Balance Sheet

A financial statement that displays the assets, liabilities, and shareholders' equity of a company at a specific point in time, showing the balance of income and expenditure over the preceding period.

Income Statement

A financial report that shows a company's revenues, expenses, and net income over a specific period, indicating financial performance.

Date Line

A hypothetical line on the earth's surface, generally following the 180° longitude, where the date changes as one travels east or west across it.