When an Economist Says That There Is "Too Much of a Good

question 112

Multiple Choice

When an economist says that there is "too much of a good thing," the economist is suggesting that:

• A) scarcity is not a problem.
• B) wants are limited.
• C) the marginal cost of the thing is less than the marginal benefit.
• D) the marginal benefit of the thing is less than the marginal cost.

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Definitions:

Gross Method

An accounting practice where invoice transactions are recorded at their full, or gross, amounts before any discounts are applied.

Periodic Inventory Method

An accounting approach where inventory is physically counted at specific intervals to determine the cost of goods sold.

Merchandise Purchase

Refers to the acquisition of goods to be sold in the normal course of business.