When Making a Decision, It Is Often More Difficult to Identify

question 137

Multiple Choice

When making a decision, it is often more difficult to identify the ______ associated with the decision because ______.

• A) costs; an individual must weigh monetary costs and opportunity costs differently
• B) costs; an individual should consider opportunity costs but ignore sunk costs
• C) benefits; it is impossible to put a dollar value on benefits
• D) benefits; individual people identify benefits while firms identify costs

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Definitions:

Transfer Payments

Financial distributions without the requirement of goods or services in return, such as welfare or social security.

Tax Revenues

Governments' income derived from tax levies.

Campaign Pledge

A promise or commitment made by a political candidate or party to the electorate as part of their platform during an election campaign.

Balanced Budget Amendment

A proposed federal constitutional rule requiring that the government not spend more than its income in a fiscal year, aimed at ensuring fiscal responsibility.