Suppose a Policy Change Generates $90,000 of Benefits for Low-Income

question 102

Multiple Choice

Suppose a policy change generates $90,000 of benefits for low-income families and $150,000 of costs for high-income families. We can best describe the change as

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

---

Definitions:

Perfection

The series of legal steps a secured party takes to protect its right in the collateral from the other creditors who want their debt returned through the same collateral.

Security Interest

A legal claim or right granted over property to secure the payment of a debt or obligation.

Financing Statement

A document that lists the names and addresses of all the parties involved in the transaction, a description of the collateral, and the signature of the debtor.

Federal Trade Commission

A United States federal agency established to protect consumers and ensure a strong competitive market by enforcing antitrust and consumer protection laws.