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If a Policy Helps Some but Harms Others

Question 13

Multiple Choice

If a policy helps some but harms others,


A) the result is a Pareto improvement for the people who are helped.
B) then the cost-benefit analysis will show a net increase in surplus and is therefore desirable.
C) we cannot use the Pareto principle to evaluate whether or not the policy is desirable.
D) it is too hard to determine whether or not the outcome is desirable.

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