Identify Different Policy Design Tools

question 14

Essay

Identify different policy design tools.

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Definitions:

Production Possibilities Frontier

Curve showing the combinations of two goods that can be produced with fixed quantities of inputs.

Pareto Optimal

A state of allocation of resources from which it is impossible to reallocate so as to make any one individual or preference criterion better off without making at least one individual or preference criterion worse off.

Marginal Rate

The rate at which one variable changes with respect to a minute change in another variable.

Cheese Doodles

A popular snack food made from cornmeal, cheese coating, and often baked or fried.