The formula for calculating the tax multiplier is

According to economic theory, the political process tends to

A) benefit every participant equally. B) harm every participant equally. C) concentrate benefits in the hands of special interest groups and disperse the costs throughout the uninformed voters. D) support public projects that clearly pass a strict benefit-cost analysis.

Refer to Scenario 1-1. Using marginal analysis terminology, what is another economic term for the incremental cost of producing the last 400 t-shirts?

A) operating cost B) marginal cost C) explicit cost D) Any of the above terms are correct.