The Cost of Producing One More Unit of a Good

question 251

Multiple Choice

The cost of producing one more unit of a good or service is equal to its

• A) marginal benefit.
• B) producer surplus.
• C) marginal expenditure.
• D) consumer surplus.
• E) marginal cost.

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Definitions:

Free Trade

The policy of allowing goods and services to be traded between countries with few or no restrictions or tariffs.

General Agreement

A broad consensus or mutual understanding among parties on a specific set of terms or conditions in various contexts.

Tariffs

Taxes imposed on imported goods, typically used by governments to protect domestic industries and regulate trade balance.

Great Depression

A severe worldwide economic depression that took place mostly during the 1930s, beginning in the United States.