When Government Policies Are Being Designed

question 52

Multiple Choice

When government policies are being designed:

• A) there is usually a tradeoff between equity and efficiency.
• B) equity and efficiency goals are usually independent of each other.
• C) equity can usually be achieved without an efficiency loss.
• D) increasing efficiency usually results in more equity.

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Definitions:

Absolute Value

A numerical value without regard to its sign, symbolized as |x|, representing the distance of a number on the number line from the origin.

Percentage Change

Percentage change is a mathematical calculation that shows how much a specific number has increased or decreased, expressed as a percentage of its previous value.

Cross-price Elasticity

A measure of how the quantity demanded of one good responds to a change in the price of another good, represented as a ratio.

Complements

Goods or services that are used together, where the consumption of one enhances the use or value of the other.