Which of the following statements is true?
A) Cost-benefit analysis does not yield the same result as optimization analysis.
B) A rational economic agent is not likely to optimize.
C) Cost-benefit analysis can also be used for normative economic analysis.
D) The net benefit of an option that costs $50 and provides a benefit of $100 is equal to $150.
C
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In the Taylor rule, does the target for the federal funds rate respond differently for a recession caused by a decrease in aggregate demand and for a recession caused by a decrease in short-run aggregate supply? Explain whether there is or is not a
difference in how the target for the federal funds rate changes.
Susan can bake 200 cookies in an hour or watch her favorite TV show. If she chooses to watch her show, her opportunity cost is
a. 200 cookies b. 100 cookies c. 150 cookies d. Need more information