Resources Are Efficiently Utilized When Production Is Such That Marginal

question 172

Multiple Choice

Resources are efficiently utilized when production is such that marginal social benefit

• A) is equal to marginal social cost.
• B) exceeds marginal social cost by as much as possible.
• C) is less than marginal social cost.
• D) None of the above because efficiency has to do with property rights and has nothing to do with marginal social benefit or marginal social cost.

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Definitions:

Treasury Bond

A long-term, fixed-interest government security with a maturity of more than ten years, considered a safe investment.

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The price a buyer is willing to pay for a security or asset.

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The lowest price a seller is willing to accept for an asset being sold on the market, opposite of the bid price.

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The highest quality bonds issued by corporations with a strong ability to repay the debt, making them low-risk investments.