What Is the Most Appropriate Test to Evaluate Whether a Government-Spending

Multiple Choice

What is the most appropriate test to evaluate whether a government-spending program will improve living standards and lead to higher income levels?

A) The total number of jobs created by the program.
B) The value of the output generated by the government-spending program compared to its opportunity cost.
C) The reduction in the rate of unemployment as the result of the spending on the program.
D) The taxes necessary to finance the program compared to the revenues generated by the additional employment created by the program.