When an Economy Operates Efficiently

question 28

Multiple Choice

When an economy operates efficiently,

• A)the MRPs of every input into the production of a good are equal.
• B)marginal utility equals marginal cost for every good.
• C)the price of a good equals the sum of the marginal physical products of its inputs.
• D)All of the responses are correct.

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Definitions:

Ohm's Law

A fundamental principle stating that the current through a conductor between two points is directly proportional to the voltage across the two points, given the resistance remains constant.

Earth Ground

A ground established by driving a metal rod into the earth.

Ground Symbol

A universal symbol used in electrical diagrams and schematics to denote the common return path for an electric current, or a direct physical connection to the Earth.

Applied Voltage

The electric potential difference applied across a device or component.