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Economics Mcqs
Q
In general, if a benevolent social planner wanted to maximize the total benefits received by buyers and sellers in a market, the planner should?
AA. Choose a price below the market equilibrium price
BB. Allow the market to seek equilibrium on its own.
CC. Choose any price the planner wants because the losses to the sellers (buyers) from any change in price are exactly offset by the gains to the buyers (sellers).
DD. Choose a price above the market equilibrium price
Correct Answer:
B. B. Allow the market to seek equilibrium on its own.
