If, in a Competitive Market, Marginal Benefit Is Less Than

question 413

Multiple Choice

If, in a competitive market, marginal benefit is less than marginal cost,

• A) the net benefit to consumers from participating in the market is less than the net benefit to producers.
• B) the government must force producers to raise prices in order to achieve economic efficiency.
• C) the quantity sold is greater than the equilibrium quantity.
• D) the quantity sold is less than the equilibrium quantity.

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Definitions:

Tax Plan

A government's proposal or strategy regarding how to collect and manage taxes, including changes in tax rates, tax credits, and deductions.

Income Taxes

Taxes levied by the government directly on personal, or corporate income.

Budget Surplus

A situation where income or receipts exceed outlays or expenditures over a specific period, commonly used in the context of government budgets.

Tax Cuts

Reductions in the amount of taxes that individuals or corporations must pay to the government, often used as a strategy to stimulate economic growth or redistribute wealth.