The Following Data Are for a Series of Increasingly Extensive

question 18

Multiple Choice

The following data are for a series of increasingly extensive flood control projects: $\begin{array}{c}\begin{array}{lll}\\\\\text {Plan A= Levees}\\\text {Plan B = Small Reservoir}\\\text {Plan C = Medium Reservoir}\\\text {Plan D= Large Reservoir}\\\end{array}\begin{array}{c}\text {Total Cost}\\\underline{\text {Per Year}}\\\$ 10,000 \\24,000 \\44,000 \\72,000\end{array}\begin{array}{c}\text {Total Benefit}\\\underline{\text {Per Year}}\\ \$ 16,000 \\36,000\\52,000\\64,000\\\end{array}\end{array}$
Refer to the data.For Plan D marginal costs and marginal benefits are:

• A) $72,000 and $64,000 respectively.
• B) $28,000 and $12,000 respectively.
• C) $24,000 and $18,000 respectively.
• D) $16,000 and $28,000 respectively.

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Definitions:

Short-term Memory

A type of memory that holds a small amount of information in an active, readily available state for a short period of time.

Commons Dilemma

A situation in which individuals' short-term selfish interests are in conflict with long-term group interests and common good.

Prisoner's Dilemma

A scenario in game theory in which two individuals acting in their own self-interest do not produce the optimal outcome for either party.

Ultimatum Game

A game in economic experiments where two players decide on how to divide a sum of money; the proposer suggests a division and the responder can either accept or reject it.