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Culumanco Tshobonga
on Dec 11, 2024

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If an economic action generates more costs than benefits, the action

A) by definition increases the nation's economic welfare.
B) should not be undertaken from an efficiency standpoint.
C) should be subsidized by the government in order to make sure that it is undertaken.
D) is desirable from a public welfare standpoint even though many individuals will be harmed.

Efficiency Standpoint

A perspective from which actions are evaluated based on their ability to achieve the highest output with the least waste of resources.

Economic Action

Any decision or behavior by individuals or organizations that involves the generation, distribution, and consumption of goods and services.

Costs

The value of resources sacrificed to achieve a particular objective, such as producing goods or services.

  • Analyze the consequences of actions that have greater costs than benefits on society's welfare.
  • Ascertain whether to proceed with an economic activity after analyzing its financial gains against its expenditures.
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Kresta BasilDec 15, 2024
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