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Meryl Camille Cabanes
on Nov 25, 2024

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In assessing the efficiency of government policy, economic analysis would focus on

A) the size of government: big versus small.
B) marginal benefits versus marginal costs of government policy and action.
C) presence or absence of the invisible hand.
D) revenues and profitability of the government agencies.

Marginal Benefits

The incremental value or satisfaction derived from the use of one more unit of a good or service.

Marginal Costs

represent the cost of producing one more unit of a good or service, calculated by the change in total cost that comes from producing one additional unit.

Economic Analysis

The study of how people use resources to produce goods and services for consumption and how those goods and services are distributed and consumed.

  • Recognize the role of government in correcting market failures and enhancing economic efficiency through public goods and externalities management.
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Hajer Al ShehhiNov 29, 2024
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