If the Marginal Utility of a Gallon of Milk to Consumers

question 126

Multiple Choice

If the marginal utility of a gallon of milk to consumers is $2.50 and the MC of producing the gallon of milk is $1.50, then

• A)the value of the resources used up in producing one more gallon of milk would be $1 less than the money value of the additional gallon to consumers.
• B)society could be made better off by expanding the output of milk.
• C)resources are not being used most efficiently.
• D)All of the above are true.

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Definitions:

Computerization

The process of applying computers and technology to automate tasks, improve efficiency, and store and process information.

Production Possibilities Curve

A graphical representation showing the maximum combination of goods and services that can be produced with limited resources.

Production Possibilities Curve

A graph that shows the different quantities of two goods that an economy can produce using all its resources efficiently.

Unemployment Rate

The segment of workers within the labor force not employed but searching for work.