(Consider This) In response to the terrorist attacks of September 11, 2001, the government decided to allocate more resources toward defense goods. The government's decision reflects their assessment that:
A. the marginal benefits of additional defense goods outweighed the marginal cost.
B. the marginal cost of additional defense goods outweighed the marginal benefit.
C. there cannot be too many defense goods.
D. civilian goods are not worth producing.
Answer: A
You might also like to view...
According to the ability-to-pay principle, taxes should be levied on a person according to his or her ability to bear that tax burden
a. True b. False Indicate whether the statement is true or false
Which of the following is most likely to increase the Herfindahl index of a particular industry?
A. A horizontal merger between two of the industry's largest firms. B. A vertical merger between one of an industry's largest firms and one of the many input suppliers in the resource market. C. A conglomerate merger involving one of the industry's major firms. D. An agreement by all the industry firms to divide up the market among them.