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.

Question

Quizplus · Accepted Answer

If an economic action generates more costs than benefits, it is inefficient and should not be undertaken as it reduces overall economic welfare.

If an Economic Action Generates More Costs Than Benefits, the Action