When There Is Overproduction of a Good

question 74

Multiple Choice

When there is overproduction of a good:

• A) The marginal benefit of the good exceeds its marginal cost
• B) The marginal cost of the good exceeds its marginal benefit
• C) The net benefit of producing extra units if the good is positive
• D) The allocative efficiency is enhanced

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Definitions:

Sexual Urges

Natural, intense desires or inclinations toward engaging in sexual activities.

Freud's Theory

A set of psychoanalytic theories and therapeutic techniques related to the study of the unconscious mind, developed by Sigmund Freud.

Animal-type Phobias

A type of specific phobia characterized by an irrational and excessive fear of certain animals.

Natural Environment Type Phobias

Extreme fears of events or situations in the natural environment that cause impairment in one’s ability to function normally.