According to Cost-Benefit Analysis,a Government Project Should Be Undertaken as Long

question 35

Multiple Choice

According to cost-benefit analysis,a government project should be undertaken as long as the

• A)Opportunity costs exceed the welfare benefits.
• B)Benefits exceed the opportunity costs.
• C)Benefits equal the costs.
• D)Voters approve the project.

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Definitions:

Common Stock

Equity ownership in a corporation, with voting rights and the potential to receive dividends.

Petroleum

A natural resource that consists of a complex mixture of hydrocarbons and is used primarily as fuel and in the production of chemicals.

GDP

Gross Domestic Product, the total value of all goods and services produced within a country in a specific time period, representing the size of its economy.

Business Receipts

The total amount of income received by a business within a specific time period, before any expenses are deducted.