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How is Kaldor-Hicks Efficiency commonly used?

AFor increasing profits in private sectors

BFor determining equal distribution of resources

CIn cost-benefit analyses for public policy decisions

DFor reducing government intervention in the economy

Answer:

C. In cost-benefit analyses for public policy decisions

Read Explanation:

Kaldor-Hicks Efficiency is frequently applied in cost-benefit analyses, allowing policymakers to justify actions that yield a net gain in social welfare, even if some individuals may incur losses.


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