Suppose That the Government Is Trying to Decide Between Allocating

question 264

Multiple Choice

Suppose that the government is trying to decide between allocating its resources to build more dams or to build more freeways. In terms of forgone dams, as more freeways are constructed, the marginal benefit of additional freeways ________ and the marginal cost of additional freeways ________.

• A) increases; increases
• B) increases; decreases
• C) decreases; increases
• D) decreases; decreases

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Definitions:

Fugitive Slave Act

Legislation passed in 1850 requiring the return of escaped slaves to their owners, even if they were in a free state.

Economic Integration

The process by which different countries reduce trade barriers and coordinate monetary and fiscal policies in order to create a more seamless and unified global economy.

Republican Party

One of the two major contemporary political parties in the United States, traditionally advocating for conservative policies.

Catholic Church

The largest Christian church, with more than a billion members worldwide, led by the Pope and characterized by its traditions and interpretation of Christian doctrine.