If a country cannot produce more of one good without producing less of another good that people value more highly, then _____________________.

resource use is efficient
the resources used have the highest possible value
resource use is inefficient
the opportunity cost is the lowest possible

Marginal benefit is the benefit received from ______________________.

consuming one more unit of a good or service
producing the efficient quantity
consuming more goods or services
consuming the efficient quantity

Marginal cost is the value of the _________________________.

equilibrium quantity
marginal benefit
best alternative forgone
efficient production

The value of a tub of ice cream equals all of the following items except the ___________________.

maximum price that people are willing to pay for it
marginal benefit from consuming it
price paid for the tub
price paid for the tub plus the consumer surplus from it

Consumer surplus is the ____________________________.

the number of goods sold times the market price
total cost paid by consumers
value of the good minus its price
greatest when price increases

Producer surplus is the price of the good _____________________________.

subtracted from the value of the good
times the quantity sold
minus its opportunity cost of production
plus the consumer surplus

Utilitarianism is a principle whose goal is _______________.

equal happiness for all workers
equal pay for equal work
the greatest happiness for the greatest number
the greatest pay for the greatest number

A cost borne not by the producer but by other people is called _____________ cost.

an opportunity
a marginal
an external
a consumer

An external benefit is a benefit that _________________.

always equals external cost
experiences increasing marginal returns
accrues to someone other than the buyer of a good
is greatest at the equilibrium point

At inefficient levels of production, __________________________________.

producer surplus is greater than consumer surplus
consumer surplus is greater than producer surplus
deadweight loss occurs
the market price is greater than the monopoly price

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