If Project X Has a Cost of $6 and Provides

question 54

Multiple Choice

If Project X has a cost of $6 and provides a benefit of $10 and Project Y has a cost of $25 and provides a benefit of $27,which of the following statements is true?

• A) An individual can optimize by choosing Project X.
• B) An individual can optimize by choosing Project Y.
• C) Switching from Project X to Project Y increases net benefit by $2.
• D) Switching from Project Y to Project X decreases net benefit by $2.

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Definitions:

Economic Theory

A set of principles and frameworks for understanding how economies function, including the production, distribution, and consumption of goods and services.

Third Parties

Individuals or entities that are not directly involved in a transaction or agreement but may be affected by it or have interests in its outcome.

Health-Care Expenditures

The total amount of money spent on health care services and products within a country or region, including public and private spending.

Medicare

A federal health insurance program primarily for people who are 65 or older, providing coverage for hospital care, medical services, and prescription drugs.