Laws are efficient if they
A)uphold absolute property rights.
B)restrict all undesirable action like polluting.
C)work to equate the marginal benefits and marginal costs of behavior.
D)help maximize total benefits of behavior.
E)impose no costs on citizens.

Question

Quizplus · Accepted Answer

Laws that work to equate the marginal benefits and marginal costs of behavior are efficient because they ensure that the benefits of any behavior outweigh the costs. This helps to maximize overall societal welfare and promotes efficient resource allocation. Upholding absolute property rights (A) can create inefficiencies if it leads to underutilization of resources, while restricting all undesirable action like polluting (B) can be overly restrictive and limit productive activity. Maximizing total benefits of behavior (D) is a good goal, but it depends on the specific situation and may not always be attainable. Imposing no costs on citizens (E) is not realistic as laws often incur some costs.

Laws Are Efficient If They