ECON 2110 Clemson - Exam 3 Questions with 100% Verified Correct Answers

ECON 2110 Clemson - Exam 3 Questions with 100% Verified Correct Answers When allocative efficiency occurs, A) marginal benefit exceeds marginal cost by as much as possible. B) we can simultaneously produce more of all goods. C) technology must be increasing. D) an economy produces the goods and services most highly valued. E) marginal benefit exceeds marginal cost by some amount. - Correct Answer D The marginal benefit of a taco is measured by A) the opportunity cost of producing another taco. B) the amount of another good a person must give up to get one more taco. C) a point on the PPF. D) the price of the taco. E) the amount of another good a person is willing to give up to get one more taco. - Correct Answer E The principle of decreasing marginal benefit explains why the marginal benefit curve A) is upward sloping. B) is downward sloping. C) has an infinite slope. D) is horizontal. E) is vertical. - Correct Answer B The marginal benefit of the first hotdog consumed is ________ the marginal benefit of the fifth hot dog consumed. A) the inverse of B) less than C) greater than D) equal to E) equal to 5 times - Correct Answer C Marginal cost equals