According to the possible trade-off example between warships and drinking water in the text, the policy question that should be considered in Malaysia is
A) do the opportunity costs of the warships exceed their nominal costs?
B) do the nominal costs of the warships exceed their real costs?
C) do the benefits of the warships exceed their opportunity costs?
D) do the real costs of the warships exceed their nominal costs?

Question

Quizplus · Accepted Answer

The policy question that should be considered in Malaysia is whether the benefits of the warships exceed their opportunity costs. This is because in the example given, the government had to make a trade-off between investing in warships and providing clean drinking water for its citizens. Therefore, it is important to consider whether the benefits of having warships (e.g. national security) justify the opportunity costs (e.g. not being able to provide essential services such as clean drinking water). Option C is the only choice that directly addresses this policy question.

According to the Possible Trade-Off Example Between Warships and Drinking