A Society Could Achieve a Higher Level of Productivity If

question 100

Multiple Choice

A society could achieve a higher level of productivity if

• A) each person in the society is a jack-of-all-trades.
• B) it takes advantage of each individual's comparative advantage.
• C) it does not trade with other nations.
• D) it does not tax imported goods.
• E) it does not limit exports.

---

Definitions:

Salience of Prices

The degree to which the price of a good or service stands out to consumers and influences their purchasing decisions.

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they actually do pay.

Law of Diminishing Marginal Utility

The principle that as a person consumes more of a product, the satisfaction (utility) gained from consuming each additional unit decreases.

Diminishing Marginal Utility

is an economic principle stating that as a person increases consumption of a product, there is a decline in the additional satisfaction (utility) that person gains from consuming one more unit of the product.