If the Marginal Benefit of the Next Slice of Pizza

question 23

Multiple Choice

If the marginal benefit of the next slice of pizza exceeds the marginal cost,you will

• A)be unable to choose between eating and not eating.
• B)not eat the slice of pizza.
• C)eat the slice of pizza.
• D)eat half the slice.
• E)More information is needed about how much the marginal benefit exceeds the marginal cost to determine if you will or will not eat the slice.

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Definitions:

Scarce Resources

Resources that are limited in availability and can run out if not used efficiently, leading to the necessity of making choices on how to allocate them.

Invisible Hand

A metaphor introduced by Adam Smith to describe the self-regulating nature of the marketplace.

Economic Prosperity

The state of flourishing, thriving, good fortune, and/or successful social status in terms of wealth, health, and happiness.

Incentives

Forms of motivation that aim to encourage people to perform actions or undertake activities by providing rewards or benefits.