The Cost-Benefit Principle Indicates That an Action Should Be Taken

question 50

Multiple Choice

The Cost-Benefit Principle indicates that an action should be taken if:

• A)its total benefits exceed its total costs.
• B)its average benefits exceed its average costs.
• C)its net benefit (benefit minus cost)is zero.
• D)its extra benefit is greater than or equal to its extra cost.

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Definitions:

Discharge

The release or extinguishment of an obligation, debt, or liability; in legal contexts, it can refer to the dismissal of a case.

Granted

Given or allowed, often in response to a request.

Exempt

To free or release from an obligation, requirement, or other restriction, typically used in legal, financial, or regulatory contexts.

Bankruptcy

A legal proceeding involving a person or business that is unable to repay outstanding debts, through which they seek relief from some or all of their debts.