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Author Question: Suppose a policy change generates $90,000 of benefits for low-income families and $150,000 of costs ... (Read 54 times)

Engineer

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Question 1

Suppose a new government policy generates $6,000 of benefits for local businesses and $4,000 of costs. We can best describe the policy as


◦ Pareto efficient.
◦ inefficient.
◦ potentially efficient.
◦ equitable.

Question 2

Suppose a policy change generates $90,000 of benefits for low-income families and $150,000 of costs for high-income families. We can best describe the change as


◦ Pareto efficient.
◦ inefficient.
◦ potentially efficient.
◦ equitable.


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Marked as best answer by Engineer on Apr 19, 2019

covalentbond

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