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

Question

Quizplus · Accepted Answer

The policy change generates benefits for low-income families but costs for high-income families, making it inefficient.

Suppose a Policy Change Generates $90,000 of Benefits for Low-Income