Use the Figure Below to Answer the Following Question(s)

question 43

Multiple Choice

Use the figure below to answer the following question(s) . Figure 6-1
Figure 6-1 illustrates the four possibilities of the distribution of costs and benefits among voters for a government project. For which types of projects would government action most likely work well, undertaking only efficient projects and rejecting inefficient ones?

• A) types A and B
• B) types B and D
• C) types B and C
• D) types A and D

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Definitions:

C$

C$ refers to the Canadian Dollar, the currency of Canada, symbolized as CAD in the foreign exchange market.

US$

The abbreviation for the United States Dollar, the official currency of the United States of America.

Exchange Rates

The price at which one currency can be exchanged for another.

Canadian Dollars

The currency of Canada, represented by the symbol CAD or C$.