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AP® Macroeconomics

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Moderate

Over-allocation

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APMACR-UAJE4Y

If a society over-allocates resources in the production of only one product, this means

A

demand for the product is increasing.

B

marginal cost for the product is greater than the marginal benefit.

C

marginal cost for the product is less than the marginal benefit.

D

opportunity cost of the product is decreasing.

E

a shortage is likely to occur for the product.