At the Current Level of Consumption, the Marginal Social Benefit

question 28

Multiple Choice

At the current level of consumption, the marginal social benefit of health care is $300 while the marginal social cost if $450. Based on this information:

• A) the quantity of health care should remain unchanged.
• B) the quantity of health care should be increased.
• C) the quantity of health care should be decreased.
• D) the quantity of health care is currently at the efficient level.

---

Definitions:

Bankrupt

The legal status of a person or entity that cannot repay the debts it owes to creditors, leading to legal intervention for asset distribution.

Accounts Payable

Liabilities of a business that are due to creditors within a short period, usually one year, and are to be paid in cash or other current assets.

Equipment

Tangible property used in the operations of a business not intended for sale, including machinery, computers, and furniture.

Cash

A form of currency that includes coins and paper bills.