(Consider This) In response to the terrorist attacks of September 11, 2001, the government decided to allocate more resources toward defense goods. The government's decision reflects their assessment that
A) the marginal benefits of additional defense goods outweighed the marginal cost.
B) the marginal cost of additional defense goods outweighed the marginal benefit.
C) there cannot be too many defense goods.
D) civilian goods are not worth producing.

Question

Quizplus · Accepted Answer

The government's decision suggests that they believe the marginal benefits of additional defense goods outweigh the marginal costs, as they are allocating more resources toward producing them. This implies that the benefits of additional defense goods, such as increased national security, are more valuable to society than the costs incurred from producing them.

(Consider This) in Response to the Terrorist Attacks of September