Cost-Benefit Analysis Is Important to Determine the Role of Government

question 133

Multiple Choice

Cost-benefit analysis is important to determine the role of government in our economy because

• A)the government should provide all goods for which the benefits exceed the costs.
• B)cost-benefit analysis identifies the possible gains to society from government provision of a particular good.
• C)markets for private goods cannot effectively assign costs and benefits.
• D)cost-benefit analysis is the best tool to identify market failures.

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Definitions:

Karen Horney

was a psychoanalytic psychologist known for her theories on neurosis, personality development, and the concept of basic anxiety.

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Anxious-ambivalent

A type of attachment style characterized by intense emotional dependence and anxiety about the stability of close relationships.

Attachment Style

The pattern of how individuals form emotional bonds and react to the needs for closeness and space in relationships.