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Mustafa Kaakarli
on Nov 05, 2024

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Suppose a policy change generates $200,000 of benefits for low-income families and $175,000 of costs for high-income and middle-class families. We can best describe the change as

A) inefficient.
B) Pareto efficient.
C) potentially efficient.
D) equitable.

Potentially Efficient

A state where resources could be allocated in a way that no one could be made better off without making someone else worse off.

High-Income Families

Households that earn a significantly higher income than the average, often placed within the top income brackets for a particular region, influencing their spending, saving, and investment behavior.

Low-Income Families

Households that earn significantly less income than the average for their location or society, often qualifying them for certain types of financial aid.

  • Distinguish between equitable and efficient policy changes and their societal impacts.
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Ashley QuintanillaNov 06, 2024
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