Logrolling Can Either Increase or Diminish Economic Efficiency

question 248

True/False

Logrolling can either increase or diminish economic efficiency.

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Definitions:

External Cost

Costs incurred by a third party who did not agree to the action causing the cost, typically associated with environmental, health, and social impacts.

Equitable Distribution

The fair and impartial division of resources or wealth among all members of a society.

Government Role

The responsibilities and activities undertaken by a government, including the creation and enforcement of laws, economic regulation, and public services.

Capital Goods

Physical assets used by businesses to produce goods and services, such as machinery, buildings, and equipment.