Underallocation of Resources in an Industry Means That for the Last

question 38

Multiple Choice

underallocation of resources in an industry means that for the last unit produced,

• A)economic profit is still rising.
• B)society places a higher value on the resources required to produce the last unit than the value society places on consuming the last unit.
• C)the demand price for the last unit exceeds the marginal cost of producing the last unit.
• D)the cost of producing the last unit exceeds its value to society.
• E)long-run average cost is falling.

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Definitions:

Other-Race Effect

An inclination to more effortlessly discern faces of the race one is predominantly exposed to, generally one's own race.

Hindsight Bias

The tendency to believe, after an event has occurred, that one would have predicted or expected the outcome, often referred to as the "I-knew-it-all-along" effect.

Scapegoat Theory

A social psychology concept suggesting that individuals or groups often blame someone else for their own problems, leading to feelings of prejudice against that person or group.

Just-World Phenomenon

The cognitive bias to believe that the world is fair and people get what they deserve.