Which Key Principle in Economics Best Explains Crowding Out

question 74

Multiple Choice

Which key principle in economics best explains crowding out?

• A) the principle of diminishing returns
• B) the principle of opportunity cost
• C) the principle of voluntary exchange
• D) the marginal principle

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Definitions:

Benefits Payment

refers to the disbursement of funds from government or insurance programs to individuals who qualify for various types of financial assistance, such as unemployment, disability, or health insurance.

Valid Delegation

The legal principle that allows a person to transfer their duties to another party, provided the action is authorized and the delegate is qualified.

Expressed Intent

The explicitly stated purpose or goal of an individual or entity, made clear through verbal or written communication.

Intended Third-party

Someone who, although not a direct participant in a contract or agreement, stands to benefit from the execution of the agreement.