According to the Policy Principle, Why Are Enacted Public Policies

question 72

Essay

According to the policy principle, why are enacted public policies often quite different from the ideal policies one might choose if there were no political considerations?

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Definitions:

Price Elasticity

A measure of the sensitivity of demand or supply for a product or service to changes in its price.

Incidence

The measure or rate at which a particular phenomenon occurs, often used in the context of disease or taxation.

Perfectly Elastic

Describes a situation in which the quantity demanded or supplied reacts to the smallest change in price with an infinite amount of change in quantity.

Excise Tax

A targeted tax levied on the sale of specific goods and services, such as alcohol and tobacco, often used to discourage consumption.