When the Efficient Quantity of Output Is Produced

question 334

Multiple Choice

When the efficient quantity of output is produced

• A) the marginal social benefit of the last unit produced is equal to the marginal social cost of the last unit produced.
• B) the sum of consumer surplus and producer surplus is maximized.
• C) resources are used in the activities in which they are most highly valued.
• D) All of the above answers are correct.

---

Definitions:

Inflations

The speed at which the overall price level of goods and services increases, leading to a decrease in buying power.

Taxes

Compulsory financial charges imposed by a government on individuals or entities to fund public expenditures.

Automatic Stabilizer

Economic strategies and initiatives aimed at balancing shifts in a country's economic performance without interference from governmental or policy-making bodies.

Supply-Side

Economic theory that emphasizes the importance of increasing supply (production of goods and services) as the key to economic growth, lower unemployment, and lower inflation.