The success of any policy designed to increase a society's economic pie depends on
A) how the pie is distributed among members of society.
B) how much revenue the government receives.
C) whether the costs are fixed or variable.
D) whether demand is more elastic than supply.
E) the reservation prices of consumers.

Question

Quizplus · Accepted Answer

The success of a policy designed to increase a society's economic pie depends on how the pie is distributed among members of society. Even if the size of the pie increases, if the benefits are unequally distributed, then some members of society may be worse off than before. Thus, it is important to ensure that the benefits of economic growth are shared fairly among all members of society.

The Success of Any Policy Designed to Increase a Society's