Allocative Efficiency Is Achieved When the Marginal Benefit of a Good

question 96

Multiple Choice

Allocative efficiency is achieved when the marginal benefit of a good

• A) exceeds the marginal cost by as much as possible.
• B) exceeds the marginal cost, but not by as much as possible.
• C) is less than the marginal cost.
• D) equals the marginal cost.
• E) equals zero.

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Definitions:

Prairie Potholes

Depressional wetlands scattered throughout the Upper Midwest of the United States and Canada, vital for waterfowl breeding and nesting habitats.

Retreating Glaciers

Glaciers that are diminishing in size and length due to melting, often cited as evidence of global climate change.

Food Chains

A linear sequence of organisms through which nutrients and energy pass as one organism eats another.

Terrestrial Biomes

Large community of plants and animals that occupies a distinct region of land, identified by its climate, soil, and vegetation types.