Economics 9708 · AS & A Level · Behavioural economics

Behavioural economics — practice question

Part 1[25]

‘A society that values efficiency has to allocate government funds to social sciences that operate on the belief that efficiency is important’. (Royal Society of Arts Journal, Issue 4, 2013) Explain what is meant by economic efficiency. Consider whether you agree that the only way to achieve economic efficiency is through public sector intervention in the economy.

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