1. Which of the following assertions regarding the economic approach is false?
a. The goal of economic approach is to maximise net benefits.
b. A change is economically efficient as long as marginal benefit is at least as great as marginal cost.
c. A change is economically efficient as long as the marginal social benefits exceeds marginal private benefits.
d. Economists prefer incentive-based policies to command-and-control.
2. Which of the following assertions regarding social efficiency and social welfare is correct?
a. They are the same concept
b. Social welfare includes both economic efficiency and equity whereas social efficiency does not include equity
c. Social efficiency includes both economic efficiency and equity whereas social welfare does not include equity
d. Social efficiency is a higher standard than social welfare.