The Following Data Are for a Series of Increasingly Extensive

question 103

Multiple Choice

The following data are for a series of increasingly extensive flood-control projects. Plan C entails

• A) marginal benefits in excess of marginal costs.
• B) fewer spillovers than either Plan A or Plan B.
• C) an overallocation of resources to flood control.
• D) an underallocation of resources to flood control.

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Definitions:

Antipoverty Programs

Government or organizational initiatives designed to reduce or eliminate poverty by providing assistance to the needy through services or financial aid.

Public Good

A good or service provided at no cost to every person in a society, delivered by either state institutions or a nonprofit private individual or organization.

Government Intervention

Actions taken by a government to affect the economy, which can include regulations, subsidies, tariffs, and taxes.

Excludable

A characteristic of a good whereby it is possible to prevent people from enjoying the good unless they have paid for it.