Figure 8-1 in Figure 8-1, the Recovery Phase of the Business

question 85

Multiple Choice

Figure 8-1 In Figure 8-1, the recovery phase of the business cycle can be represented by points:

• A) A.
• B) C.
• C) E.
• D) C to E.
• E) E to G

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Definitions:

Nonexcludable

A characteristic of public goods: Once a good is produced, no one can be excluded from enjoying its benefits.

Marginal Social Benefit

The additional gain to society as a whole from consuming or producing one more unit of a good or service.

Marginal Social Cost

The additional cost imposed on society as a whole by producing one extra unit of a good or service.

Nonrival

A good or service that can be consumed by one individual without preventing the consumption of the good by another individual.