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

question 524

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 undertaken from an efficiency standpoint.
• D) is desirable from a public welfare standpoint, even though many individuals will be harmed.

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Definitions:

Financial Records

Documents that track the financial activities and condition of an organization or individual, including income, expenses, assets, and liabilities.

Public-Interest Groups

Organizations that aim to influence public policy in favor of the common good or the interests of society as a whole.

Legal Institutions

Established organizations or systems that govern, enforce, and interpret laws within a society.

Shareholders

Individuals or entities that own shares in a corporation, giving them ownership interests.