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Use the Following Diagram to Answer the Following Questions

Question 70

Multiple Choice

Use the following diagram to answer the following questions.
Use the following diagram to answer the following questions.    -Refer to Consumption Goods. Suppose the marginal benefit of moving from point B to point C is $500 while the marginal cost is $350. We know that: A)  the economy should produce additional capital goods. B)  the economy should produce additional consumption goods. C)  the economy should stay at point B. D)  the economy should move from point B to point A.
-Refer to Consumption Goods. Suppose the marginal benefit of moving from point B to point C is $500 while the marginal cost is $350. We know that:


A) the economy should produce additional capital goods.
B) the economy should produce additional consumption goods.
C) the economy should stay at point B.
D) the economy should move from point B to point A.

Correct Answer:

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