Which of the Ten Principles of Economics Does Welfare Economics

question 273

Multiple Choice

Which of the Ten Principles of Economics does welfare economics explain more fully?

• A)The cost of something is what you give up to get it.
• B)Rational people think at the margin.
• C)Markets are usually a good way to organize economic activity.
• D)People respond to incentives.

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Definitions:

Discount Rate

The interest rate used to discount future cash flows to present value, often used in the context of the time value of money.

Net Present Value

A method of evaluating an investment's profitability by computing the difference between the present value of cash inflows and outflows over a period of time.

Proposed Investment

A potential allocation of funds or resources towards a new project, asset, or venture being considered.

Project

A temporary endeavor undertaken to create a unique product, service, or result, characterized by specific objectives and resources.