Which of the Following Are the Rules for Finding the Point

question 37

Multiple Choice

Which of the following are the rules for finding the point of allocative efficiency?

• A) Produce on the PPF and then produce where the marginal benefit and marginal cost are as large as possible.
• B) Produce on the PPF and then produce where marginal benefit equals marginal cost.
• C) Produce on the PPF and then produce where marginal benefit and marginal cost are constant.
• D) Produce on the PPF and then produce where the marginal benefit exceeds marginal cost by as much as possible.
• E) Produce anywhere on the PPF.

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Definitions:

Stimulus Generalization

The tendency for the conditioned response to be evoked by stimuli that are similar to the stimulus to which the response was conditioned.

Stimulus Discrimination

The ability to differentiate between similar stimuli and respond appropriately to each.

Secondary Reinforcer

A stimulus that has acquired reinforcing properties through association with a primary reinforcer, such as money becoming valuable through its ability to purchase food or other basic needs.

Salient

Refers to something that stands out prominently or is most noticeable or important.