The Cost-Benefit Principle indicates that an action should be taken if, and only if:
A. its costs are small.
B. its benefits are a result of its costs.
C. its benefits exceed its costs.
D. its benefits are positive.
Answer: C
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Define "stagflation" and explain how it can be created
What will be an ideal response?
A. What are the two effects of an increase in the wage rate on an individual's labor supply decision? Briefly explain each effect
b. Explain how a labor supply curve could be backward bending. What will be an ideal response?
One way to derive aggregate demand is by looking at its four component parts, which are
A) consumer expenditures, planned investment spending, government spending, and net exports. B) consumer expenditures, actual investment spending, government spending, and net exports. C) consumer expenditures, planned investment spending, government spending, and gross exports. D) consumer expenditures, planned investment spending, government spending, and taxes.
If the expenditure multiplier is 6.5, the tax multiplier is
a. 7.5 b. 5.5 c. -5.5 d. -6.5 e. -7.5