Suppose a New Government Policy Will Generate $5,000 of Benefits

question 32

Multiple Choice

Suppose a new government policy will generate $5,000 of benefits for local businesses and $3,000 of costs. This policy can best be described as

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

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Definitions:

Psychological Research

The systematic investigation of the mind and behavior through controlled experimentation and observation.

Everyday Reasoning

The process of making sense of daily occurrences and drawing conclusions based on personal experiences and beliefs.

Common Sense

Practical judgment concerning everyday matters or a basic ability to perceive, understand, and judge things shared by nearly all people.

Naturalistic Observation

A research method in which subjects are observed in their natural environment without any manipulation by the researcher.