Why might a politician start a costly spending program if its costs exceed its social benefits?
A. The costs cannot be measured therefore the politicians focus on the benefits which are explicit.
B. The politician is trying to find ways to raise more money for the next election.
C. Voters do not care about the costs of programs, as long as their taxes do not go up.
D. The politician gains prestige and voters are not well informed of the benefits and costs.
Answer: D. The politician gains prestige and voters are not well informed of the benefits and costs.
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The Marshall Plan (1948–51) brought about the immediate integration of Europe into international markets
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When a firm produces and sells a refrigerator worth $1,000, its contribution to the gross domestic product (GDP) on the income side is measured by: a. the price paid by the consumer
b. the investment made by the firm to manufacture the refrigerator. c. the stock of inventories used by the firm to manufacture the refrigerator. d. the cost of raw materials used by the firm to manufacture the refrigerator. e. the sum of the wages, interest, and rent paid by the firm's owners and the profit of the firm.