The Cost-Benefit Principle indicates that an action should be taken if:
A. its average benefits exceed its average costs.
B. its net benefit (benefit minus cost) is zero.
C. its extra benefit is greater than or equal to its extra cost.
D. its total benefits exceed its total costs.
Answer: C
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Four firms agree to operate as a monopoly and charge the monopoly price of $10 for their product and (jointly) produce the monopoly quantity of 50,000 units. If the competitive price for the product is $6, under the Clayton Act these four firms face treble damages of ________.
A) $600,000 B) $1,000,000 C) $3,000,000 D) $200,000
Which of the following can be categorized under fiscal policy?
a. Increase in money supply b. Decrease in money supply c. Increase in federal funds rate d. Decrease in reserve requirement e. Increase in tax rates
In the open-economy macroeconomic model, the market for loanable funds identity can be written as
a. S = I b. S = NCO c. S = I + NCO d. S + I = NCO
The capital account balance equals
A. Foreign purchases of U.S. assets plus U.S. purchases of foreign assets. B. The negative of the current account balance. C. The current account balance minus imports. D. The balance of payments plus the sum of the merchandise balance, the services balance, and unilateral transfers.