Cost-benefit analysis requires:
A) choosing the alternative with the least net benefit.
B) all costs and benefits to be measured in the same unit.
C) evaluating the budget constraint before making a choice.
D) that the risks associated with different alternatives are ignored.
B
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Commercial bank reserves are typically less than 1 percent of total assets, however in 2013 bank reserves ________ because of ________
A) rose to around 88 percent; the financial crisis of 2008-2009 B) dropped drastically to near zero; the financial crisis of 2008-2009 C) rose to around 18 percent; the financial crisis of 2008-2009 D) dropped drastically to near zero; the wave of natural disasters experienced in the nation and around the world E) rose drastically to around 18 percent; the wave of natural disasters experienced in the nation and around the world
A chemical factory and a fishing club share a lake. The marginal social costs, private marginal costs, and marginal benefits from producing chemicals are in the figure above
The chemicals dumped into the lake have always harmed the fish, but now they begin to damage the fishing boats as well. As a result, the A) marginal social cost curve shifts leftward. B) marginal social cost curve shifts rightward. C) marginal benefit curve shifts leftward. D) marginal benefit curve shifts rightward.