A new health minister proposes to distribute an apple a day (at no cost) to every citizen.

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A new health minister proposes to distribute an apple a day (at no cost) to every citizen. To be effective, the legislation states that the free apples may not be traded or sold. Explain why this “no-trade” policy would violate the efficiency condition (2.1).

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Related Book For  answer-question

Public Finance In Canada

ISBN: 9781259030772

5th Canadian Edition

Authors: Harvey S. Rosen, Ted Gayer, Jean-Francois Wen, Tracy Snoddon

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