b . establishes cause-and-effect relationships between economic variables . c . is based on value judgments . d . can never be used to make predictions . 2 . If the efficient output of a good is produced each week , then the : a . marginal social benefit of the good equals its marginal social cost each week . b . marginal social benefit of the good is at a maximum . c . total social benefit of the good is at a maximum . d . total social benefit of the good equals its total social cost .
3 . If the marginal social benefit of a good exceeds the marginal social cost at the current monthly output , then : a . it will be possible to make buyers of the good better off without harming sellers of the good .
b . it will be possible to make sellers of the good better off without harming buyers of the good .
c . either ( a ) or ( b ) d . a reduction in monthly output will be required for efficiency .
4 . The marginal social cost of bread exceeds the marginal social benefit at the current weekly output . Therefore ,
a . the marginal net benefit of bread is positive . b . the output of bread is efficient . c . a reduction in weekly output of bread is necessary to achieve efficiency . d . an increase in weekly output of bread is necessary to achieve efficiency .
5 . The total social benefit of automobiles equals the total social cost at current annual output . Then it follows that :
a . the annual output of automobiles is efficient . b . the annual output of automobiles exceeds the efficient amount .