When the Amount of Output Is Such That Marginal Social

question 121

Multiple Choice

When the amount of output is such that marginal social benefit exceeds marginal social cost, then to reach the efficient quantity

• A) production should be increased.
• B) production should be decreased.
• C) production should remain constant.
• D) More information is needed to determine if production should be increased, decreased, or not changed.

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Definitions:

Exports

Goods or services sent from one country to another for sale or trade, contributing to a nation’s gross domestic product.

Imports

Items and services that are purchased from foreign nations to be sold within the country.

Produced Abroad

Refers to goods or services that are created or performed outside the borders of the home country, often considered in the context of imports and exports.

Greater Prosperity

An increased state of wealth, success, or economic well-being.