Even if a majority of the population wants a law and the law is passed, the outcome may still be economically inefficient.

Question

Quizplus · Accepted Answer

Economic efficiency involves allocating resources in a way that maximizes the net benefit to society. A law desired by the majority may lead to misallocation of resources, creating inefficiencies by either not maximizing benefits or by increasing costs unnecessarily.

Even If a Majority of the Population Wants a Law