For Resource Use to Be Allocatively Efficient,when the Marginal Benefit

question 339

Multiple Choice

For resource use to be allocatively efficient,when the marginal benefit of a slice of pizza exceeds the marginal cost,________.

• A) more slices of pizza should be produced
• B) fewer slices of pizza should be produced
• C) no more slices of pizza should be produced
• D) allocative efficiency is reached only if the marginal benefit exceeds the marginal cost by as much as possible
• E) None of the above answers is correct.

Understand the effects of changes in aggregate demand and supply on price levels and output.

Identify the mechanisms of adjusting to long-run equilibrium, including recessionary and expansionary gaps.

Comprehend the role of nominal wages in the economy and their adjustment process.

Analyze the impact of aggregate demand and supply shifts on equilibrium in the short run and long run.

---

Definitions:

Brain Plasticity

The capacity of the brain to change and adapt in structure and function in response to learning and experience.

Information Processing Bias

A cognitive bias that affects the way individuals perceive, interpret, and remember information.

Negative Information

Information that is unfavorable or detrimental, which can significantly influence perceptions, decisions, and behaviors.

Calories

Units of energy used to quantify the amount of energy provided by food and drinks, and the amount of energy expended through activities.