Discuss New Zealand's response to the Covid-19 crisis. Explain which of the conditions of the two fundamental theorems of welfare economics are violated in a pandemic, such as the Covid-19 crisis. Explain why the Coase theorem does not apply. Explain why incentive-based policies are not applicable. Finally, using simple cost-benefit analysis, explain the policy approach taken by the New Zealand government.

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Since New Zealand government had started the monitoring of the COVID19 spreadthey come up w... View the full answer