Before considering any public project, the government should (i) compare the total cost and total benefits of the project. (ii) conduct a cost-benefit analysis. (iii) infer that citizens who vote for a project are willing to pay equally for it
a. (i) only
b. (ii) only
c. (i) and (ii) only
d. (i), (ii), and (iii)
c
You might also like to view...
An increase in the real rate of interest that can be earned on U.S. investments above the rate that can be earned on investments in India would:
a. increase the price of the dollar in Indian rupees. b. increase the supply of dollars by those holding U.S. dollars. c. decrease the equilibrium exchange rate of Indian rupees per dollar. d. all of these.
Economists find that models based on the assumption of rational behavior are robust, because a world in which everyone is rational would function quite similarly to a world in which there are no
a. unexploited profit opportunities. b. constraints due to scarcity. c. inefficient markets. d. barriers to free trade.
The primary economic function of the financial system is to
a. keep interest rates low. b. provide expert advice to savers and investors. c. match one person's consumption expenditures with another person's capital expenditures. d. match one person's saving with another person's investment.
When the overall price level decreases, what is the effect on the economy?
a. Purchasers demand a higher quantity of final goods and services.
b. There is a decrease in the quantity of real GDP demanded.
c. Movement occurs along the curve from point A to point B.
d. The aggregate demand curve shifts rightward.