When making a rational decision which requires the consideration of costs and benefits involved, the opportunity cost of a decision is often not taken into consideration when indeed it should be
a. True
b. False
Indicate whether the statement is true or false
True
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Which of the following is true regarding this statement? "The president's decision to spend more money on national defense is smart."
A) This is a normative statement. B) The federal government does not face scarcity. C) This topic would be studied in microeconomics. D) Social interest must always be more important than self-interest. E) Ceteris paribus does not apply to the government.
Suppose the United States decides to go back on the gold standard. This should
A) improve the Federal Reserve's ability to target inflation. B) decrease the Federal Reserve's ability to pursue active monetary policy. C) increase the effectiveness of expansionary monetary policy. D) increase the effectiveness of contractionary monetary policy.
Eliminating means requirements for government benefits would
a. raise saving and primarily benefit people with lower incomes. b. raise saving but primarily benefit people with higher incomes. c. reduce saving but primarily benefit people with lower incomes. d. reduce saving and primarily benefit people with higher income.
Which statement is true?
A. The government sector of GDP is larger than the consumption sector. B. The federal government spends about five percent of our GDP on foreign aid. C. The federal government spends less on Social Security than it does on defense. D. None of these statements are true.