Question

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:_________

Answer 1

Answer:

the marginal benefit of defense goods outweighs the marginal cost

Explanation:

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 the marginal benefit of defense goods outweighs the marginal cost.

In utility in economics, once the marginal benefits of buying an item outweighs the marginal cost of the item, you buy it. After the September 11, 2001 attack, the United States government found a need to increase the defense budget to prevent further attack. It can be concluded that the marginal benefit derived from increased defense spending outweighs the cost.