If an Economic Action Generates More Costs Than Benefits, the Action

question 172

Multiple Choice

If an economic action generates more costs than benefits, the action

• A) by definition increases the nation's economic welfare.
• B) should not be undertaken from an efficiency standpoint.
• C) should be subsidized by the government in order to make sure that it is undertaken.
• D) is desirable from a public welfare standpoint even though many individuals will be harmed.

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Definitions:

Court Determination

The final decision or judgment issued by a court of law.

Arbitration

A private, judicial determination of a dispute and an alternative to court action (litigation), and generally just as final and binding.

Litigation

The process of taking legal action or resolving disputes in court.

Private

Relating to or for the use of a single individual or group; not accessible or available to the public.