If the Construction of a New Elementary School Would Create

question 21

Multiple Choice

If the construction of a new elementary school would create $5 million worth of benefits for citizens and cost $7 million to construct, then using the criterion of economic efficiency, the school

• A) should be built.
• B) should not be built.
• C) results in a substantial improvement to the welfare of society.
• D) should be built if it passes by a majority vote.

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Definitions:

Year 3 Dollars

A term used to adjust financial figures according to inflation or deflation, making them comparable to the value of money in the third year of a specific reference period.

Food Expenditures

The amount of money spent by households or individuals on food products, either at home or in dining establishments.

Nominal Box Office Receipts

The total amount of money earned from ticket sales for movies at theaters, not adjusted for inflation.

Prices

The cash amount predicted, necessary, or offered as compensation for something.