When Economists Say That an Activity Meets the Criterion for Economic

question 160

Multiple Choice

When economists say that an activity meets the criterion for economic efficiency, they mean

• A) a majority of citizens favor the activity.
• B) the benefits that result from the activity exceed the costs.
• C) the number of people who gain from the activity exceeds the number on whom costs are imposed.
• D) the costs that result from the activity exceed the benefits.

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Definitions:

Cognitive Abilities

Mental capabilities including reasoning, problem solving, planning, abstract thinking, complex idea comprehension, learning quickly, and learning from experience.

Working Memory Capacity

Refers to the amount of information that can be held in working memory at one time, which plays a critical role in reasoning, decision-making, and behavior.

Reading Comprehension

The ability to understand, engage with, interpret, and draw conclusions from written texts.

Working Memory

A cognitive system responsible for temporarily holding information available for processing and manipulation.