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Use the Following Diagram to Answer the Following Questions

Question 5

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.

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