When Society Overallocates Resources to a Product It Means That

question 89

Multiple Choice

When society overallocates resources to a product it means that the:

• A) investment in the product is declining.
• B) opportunity cost of the product is decreasing.
• C) marginal benefit is greater than the marginal cost.
• D) marginal benefit is less than the marginal cost.

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Definitions:

Soft-money Contributions

Unregulated, indirect contributions made to political parties for general support purposes, not directly tied to the endorsement of specific candidates, which became more restricted in U.S. politics by the Bipartisan Campaign Reform Act of 2002.

Federal Elections Commission

A federal agency created to regulate the financing of political campaigns in the United States.

Federal Courts

Courts of law under the national government of the United States, responsible for interpreting federal laws, including the Constitution, and adjudicating disputes.

Soft Money

Political funding directed to a party or organization for general political activities, not directly tied to the support of specific candidates, and less regulated by law.