Which of the Following Statements Is TRUE

question 438

Multiple Choice

Which of the following statements is TRUE?

• A) At the efficient quantity, marginal social benefit equals marginal social cost.
• B) Marginal social cost increases as the quantity produced decreases.
• C) Marginal social benefit decreases as the quantity consumed decreases.
• D) If marginal social benefit exceeds marginal social cost by as much as possible, production is efficient.

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Definitions:

Racially Prejudiced

Holding prejudgments or hostile attitudes towards individuals of a different race based on stereotypes and biases.

Groupthink

A psychological phenomenon in which the desire for harmony or conformity within a group results in an irrational or dysfunctional decision-making outcome.

Foot-In-The-Door Effect

The foot-in-the-door effect is a psychological principle that suggests people are more likely to agree to a large request if they first agree to a smaller one.

Minority Influence

The process by which a smaller part of a group changes the beliefs or behaviors of the majority, often through consistency, commitment, and flexibility.