To Make a Rational Policy Decision, Policymakers Must

question 12

Multiple Choice

To make a rational policy decision, policymakers must

• A) chose a policy based only on its benefits.
• B) assess a policy based only on its costs.
• C) chose a policy with the greatest advantage.
• D) weigh benefits against costs

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Definitions:

Association

A group of individuals who voluntarily come together to achieve a common purpose, often structured as a legal entity.

Causation

A relationship between two events where one event is affected by the occurrence of the other event.

Limited Resources

Refers to the finite availability of goods and inputs, such as labor, raw materials, and capital, which are used to produce economic outputs.

Unlimited Wants

The economic concept that humans have insatiable desires for goods and services, which exceeds the resources available to satisfy them.