Efficiency of a policy:
What they are able/can do to streamline...
E.g. does it improve allocative, productive and dynamic efficiency
Effectiveness of a policy:
Which government policy is most likely to meet a specific economic or social objective?
Which policies are likely to have an impact in the short term when a quick response from consumers and producers is desired, and which policies are likely to prove most cost-effective in the longer term?
Equity effects of intervention:
- Try to make the distribution of income more equal?
- E.g. Does one group in the society gain more than other groups?
Sustainability of a policy:
- Which sources of energy we choose to rely on in to future years
Good - little by little you WILL get there!
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