As long as a public sector activity will generate benefits regardless of the costs, the activity should definitely be undertaken.
Answer the following statement true (T) or false (F)
False
Public sector activity should generate benefits that are greater than or equal to the costs of producing them.
You might also like to view...
Which of the following statements about international trade restrictions is true?
a. They ensure that only efficient producers survive. b. They ensure that countries specialize only in those products that they can produce most efficiently. c. In the majority of cases, they harm domestic consumers. d. They typically benefit foreign producers at the expense of domestic consumers. e. They ensure that higher-quality goods are provided at lower prices.
Elephant populations have:
A. expanded everywhere because of state control of elephant populations. B. declined in countries where they are owned by local villages, and expanded where they are owned by the state. C. expanded in countries where they are owned by local villages, and declined where they are owned by the state. D. declined everywhere, regardless of whether property rights over elephants are recognized.
Which of the following is most likely to be a monopolistically competitive firm?
A) smartphone manufacturer B) cellphone service provider C) college textbook publisher D) computer software maker
A budget constraint
A) represents the bundles of consumption that make a consumer equally happy. B) refers to the limited amount of income available to consumers to spend on goods and services. C) reflects the desire by consumers to increase their income. D) shows the prices that a consumer chooses to pay for products he consumes.