At which point is society's optimal output of a particular product achieved?
Explanation
This question tests the fundamental economic rule for allocative efficiency: producing a good up to the point where its marginal benefit equals its marginal cost.
Other questions
What is the primary concern of economics as a social science?
What does the concept of 'opportunity cost' represent in economics?
What does the economic term 'utility' refer to?
What is the focus of 'marginal analysis' in economics?
According to the economic perspective, why is there 'no free lunch'?
Which of the following describes microeconomics?
What is the primary difference between positive and normative economics?
What does the 'other-things-equal' or 'ceteris paribus' assumption mean in economics?
A consumer has a gift card worth $120. If DVDs cost $20 each and paperback books cost $10 each, what is the maximum number of DVDs the consumer can purchase?
Using the budget line example where a consumer has $120, DVDs cost $20, and books cost $10, what is the opportunity cost of purchasing one DVD?
Which of the following is NOT considered an economic resource or a factor of production?
What does a point lying inside the production possibilities curve (PPC) represent?
The bowed-out shape of the production possibilities curve illustrates which economic principle?
According to the production possibilities table for an economy producing pizzas and industrial robots, what is the opportunity cost of increasing pizza production from 2 to 3 hundred thousand units?
What combination of factors leads to economic growth, represented as an outward shift of the production possibilities curve?
The 'fallacy of composition' is a pitfall in economic reasoning that involves assuming that:
How can international trade affect a nation's production possibilities?
A nation's choice between producing 'goods for the future' (like capital goods) and 'goods for the present' (like consumer goods) affects what?
Which of the following would be an example of the 'post hoc, ergo propter hoc' fallacy?
An economy is producing at a point on its production possibilities curve. What must be true?
In the budget line example with a $120 income, DVDs at $20, and books at $10, which combination is attainable but does not use the full income?
What is the economic rationale for the law of increasing opportunity costs?
Based on Global Perspective 1.1, which country had the highest average per capita income in 2006 at $57,230?
The 'Consider This: Fast-Food Lines' box uses customer behavior in choosing a line to illustrate what economic principle?
What are the two general types of goods symbolized by 'industrial robots' and 'pizzas' in the production possibilities model?
In the production possibilities model, what does an economy sacrifice when it chooses to produce more consumer goods ('more now')?
In the budget line example with a $120 income, if the price of DVDs increases from $20 to $30 while the price of books remains $10, what happens to the budget line?
The 'Last Word' section on pitfalls to economic reasoning gives an example of a single rancher expanding a herd versus all ranchers expanding their herds. This illustrates which fallacy?
Why is entrepreneurial ability considered a distinct economic resource?