Failure to Achieve the Maximum Total Net Societal Benefit (TNSB)

question 5

Multiple Choice

Failure to achieve the maximum total net societal benefit (TNSB) results in some amount of _______.

• A) deadweight loss
• B) negative TNSB
• C) increasing opportunity costs
• D) unnecessary direct costs
• E) diminishing marginal productivity

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Definitions:

Unexpected Transactions

Transactions that occur outside of the planned or anticipated operations or activities of individuals or businesses.

Financial Intermediaries

Institutions that facilitate the channeling of funds between lenders and borrowers by becoming intermediaries themselves.

Pension Funds

Investment pools that collect and manage funds for the purpose of providing retirement income to employees.

Standard of Value

A benchmark or reference point used to measure the worth of goods, services, or assets in economic transactions.