Suppose the government provides peanut butter to everyone free of charge and everyone consumes it to the point at which he receives no additional satisfaction from another spoonful. Is this necessarily good?

Question

Quizplus · Accepted Answer

The correct answer is B because it highlights the concept of opportunity cost, suggesting that the resources used to produce peanut butter could have potentially been allocated more efficiently to produce other goods that might have provided greater overall satisfaction or utility to society.

Suppose the Government Provides Peanut Butter to Everyone Free of Charge