Asked by Ericka Pearce on Jul 22, 2024
Verified
An economist has estimated that the maintenance of a public park costs $25,000 a year and that the public park generates $30,000 a year in revenue for merchants near the park. From society's point of view, the maintenance of this park is
A) inefficient because everyone in the community pays taxes to support the park, but only the merchants near the park benefit.
B) inefficient because the additional revenues generated by the park are so low.
C) potentially efficient because the value of the gains exceed the value of the costs.
D) potentially efficient because no one would be made worse off as a result of maintaining the park.
Public Park
An area of natural, semi-natural, or planted space set aside for human enjoyment and recreation or for the protection of wildlife or natural habitats.
Merchants
Merchants are individuals or businesses engaged in the commercial trading of goods and services, often acting as intermediaries between producers and consumers.
Society's Point of View
Society's Point of View considers the interests, needs, and values of the community or larger collective, often in the context of decision-making or assessing impacts.
- Analyze the conditions under which a policy or action can be considered potentially efficient.
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Learning Objectives
- Analyze the conditions under which a policy or action can be considered potentially efficient.
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