The third is for the government to distribute income to


Consider three ways of helping poor people to buy food, clothing, and shelter. The first way is to pass laws setting price ceilings to keep these basic goods affordable. The second is to have the government distribute coupons that give poor people a discount when they buy these necessities. The third is for the government to distribute income to poor people. Which program is more likely to have a Pareto-efficient outcome? Describe why the other programs are not likely to be Pareto efficient.

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Econometrics: The third is for the government to distribute income to
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