Assume That a Government Is Considering a New Social Program

question 96

Multiple Choice

Assume that a government is considering a new social program and may choose to include in this program one of four progressively larger projects. The marginal cost and the marginal benefits of each of the four projects are given in the table below. Suppose that the government chooses to do project C. What is the total cost and total benefit of doing project C?

• A)Total cost is $5 billion, and total benefit is $7 billion.
• B)Total cost is $4 billion, and total benefit is $7 billion.
• C)Total cost is $8 billion, and total benefit is $12 billion.
• D)Total cost is $15 billion, and total benefit is $20 billion.

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Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.