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:

Taxes

Movements or orientations of an organism in response to external stimuli.

Fixed Action Patterns

Instinctive behavioral sequences that are relatively invariant within the species and are triggered by specific stimuli.

Innate

Traits, abilities, or behaviors that are inherent and present at birth, not acquired through learning.

Key Stimulus

A specific environmental cue that triggers a fixed action pattern in an animal.