Suppose That the Government Is Trying to Decide Between Allocating

question 85

Multiple Choice

Suppose that the government is trying to decide between allocating its resources to build more dams or to build more freeways. In terms of forgone dams, as more freeways are constructed, the marginal benefit of additional freeways and the marginal cost of additional freeways
)

• A) increases; increases
• B) increases; decreases
• C) decreases; decreases
• D) decreases; increases

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Definitions:

Union Wages

Wages that are negotiated by labor unions on behalf of their members, typically resulting in higher pay and better benefits compared to non-union wages.

Union Jobs

Positions of employment that are represented by a labor union, offering workers collective bargaining rights with their employers regarding wages, benefits, and working conditions.

Allocation Of Labor

The distribution of labor resources among different tasks, jobs, or industries to maximize efficiency or output.