Analysts who support the idea of a ___________ perspective applaud the weakening of the state because they see it as merely creating needless regulations that interfere with productivity.

Refer to Figure 21-2. Which of the following is consistent with the graph depicted above?

A) There is a shift from an income tax to a consumption tax. B) The government runs a budget surplus. C) New government regulations decrease the profitability of new investment. D) An expected expansion increases the profitability of new investment. Figure 21-3

A manager of a clothing firm is deciding whether to add another factory in addition to one already in production. The manager would compare

a. The total benefits gained from the two factories to the total costs of running the two factories. b. The incremental benefit expected from the second factory to the total costs of running the two factories. c. The incremental benefit expected from the second factory to the cost of the second factory d. The total benefits gained from the two factories to the incremental costs of running the two factories.