If an economic action generates more costs than benefits, the action
a. by definition increases the nation's economic welfare.
b. should not be undertaken from an efficiency standpoint.
c. should be subsidized by the government in order to make sure that it is undertaken.
d. is desirable from a public welfare standpoint even though many individuals will be harmed.
B
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The branch of economics that deals with the analysis of the whole economy is called
A) macroeconomics. B) marginal analysis. C) microeconomics. D) metroanalysis.
In constructing the Human Development Index, high income levels are given less than proportionate weight because
a. Items bought by rich people are luxuries, not necessities. b. United Nations bureaucrats are prejudiced against the rich. c. Dollars received by rich people may have a lower marginal utility than dollars received by poor people. d. Items bought by rich people create more pollution than those bought by the poor. e. All of the above are valid reasons.