We Allocate Resources Efficiently When

question 179

Multiple Choice

We allocate resources efficiently when

• A) marginal benefit is equal to marginal cost.
• B) marginal benefit is greater than marginal cost by any amount.
• C) marginal cost is greater than marginal benefit.
• D) total benefit is greater than total cost.
• E) marginal benefit is greater than marginal cost by as much as possible.

---

Definitions:

Developing Economy

A nation with a lower standard of living, undeveloped industrial base, and low Human Development Index (HDI) relative to other countries.

Illiteracy

The inability to read and write, affecting an individual's ability to participate fully in society and the economy.

Economic Growth

The growth in the real market value of the goods and services an economy generates over a period.

Life Expectancy

The average number of years an individual or a specific group of people is expected to live, based on statistical calculations.