In Which Situation Would Economists Use the Word Equity

question 144

Multiple Choice

In which situation would economists use the word equity?

• A) Each member of society has the same income.
• B) Society is getting the most it can from its scarce resources.
• C) Those in society who have the least will receive the most.
• D) The benefits of society's resources are distributed fairly among society's members.

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Definitions:

Marginal Product

The additional output that is generated by adding one more unit of a specific input, ceteris paribus.

Marginal Product

The additional output resulting from the use of one more unit of a variable input, holding all other inputs constant.

Production Possibilities

A curve that represents the maximum combination of goods or services that can be produced in a given period with available resources.

Marginal Product

The extra output generated from increasing a particular input by one unit, while all other inputs remain unchanged.