Assume That a Government Is Considering a New Social Program

question 12

Multiple Choice

Assume that a government is considering a new social program and may choose to include in this program any number of four progressively larger projects.The marginal cost and the marginal benefit of each of the four projects is provided in the table. Refer to the above table and information.What project should the government select to achieve the maximum net benefit?

• A) A
• B) B
• C) C
• D) D

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Definitions:

Secondary Consumers

Organisms, typically animals, that obtain energy by consuming primary consumers, which are herbivores.

Radiant Energy

Energy that travels by waves or particles, particularly electromagnetic radiation such as light and heat.

Photosynthesis

A process used by plants and other organisms to convert light energy, usually from the sun, into chemical energy that can be later released to fuel the organism's activities.

NPP (Net Primary Productivity)

The rate at which plants and other photosynthetic organisms produce organic compounds in an ecosystem minus the rate at which they use some of these compounds for respiration.