Suppose That the Government Is Trying to Decide Between Allocating

question 264

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; increases
• D) decreases; decreases

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Definitions:

Infant digestive systems

The developmental physiological system in infants that processes and absorbs nutrients from ingested food, adapting as the infant grows.

Food allergies

An immune system response that occurs soon after eating a certain food, causing various symptoms which can range from mild to severe.

Aversion to foods

A strong dislike or disinclination towards certain foods, often due to taste, texture, or past negative experiences.

Unhealthy appetite

An abnormal or excessive desire for food or substances that can negatively affect one's health.