The Overallocation of Resources by Society to a Product Means

question 31

Multiple Choice

The overallocation of resources by society to a product means that the:

• A) marginal benefit is greater than the marginal cost.
• B) marginal cost is greater than the marginal benefit.
• C) entrepreneurs are making too much profit in the economy.
• D) workers are not being paid adequate wages and salaries.

Acknowledge the impact of early childhood education programs like Head Start on children's development.

Identify how preschool participation can influence children and families, particularly in terms of academic and socio-emotional development.

Understand how language and reading at an early age can significantly affect vocabulary and school readiness.

Recognize the disparities in preschool enrollment and its consequences on children's future educational opportunities.

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Definitions:

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, indicating the profit beyond the normal return on investment.

Marginal Decision Rule

A principle stating that an action should be taken if, and only if, the marginal benefits are greater than or equal to the marginal costs.

MR

Short for Marginal Revenue, it refers to the extra revenue that an organization receives from selling one more unit of a good or service.

Maximizing Profit

The process a firm adopts to establish the optimal price and quantity for maximal profit.