-In the Figure Above, If the Market Is Unregulated, Then

question 392

Multiple Choice

-In the figure above, if the market is unregulated, then at the equilibrium output level, the marginal social cost of production

• A) is less than the marginal benefit to consumers.
• B) exceeds the marginal benefit to consumers.
• C) equals the marginal benefit to consumers.
• D) equals the marginal private cost of production.

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Definitions:

Federal Budget Deficit

is the financial shortfall when the government's expenditures exceed its revenues within a given fiscal year.

National Debt

The total amount of money that a country's government has borrowed, by various means, to fund its activities beyond its revenues.

Budget Act

A legislative act that governs budgetary allocations and the process of budget creation and approval by a government.

Marginal Tax Rate

Additional taxes paid divided by taxable income.