Answer to Question #97386 in Microeconomics for Maya Johnson

Question

Why is it that the goals of policymaking (efficiency, growth, stability, equity) often conflict?

Answer 1

 

Economic goals often conflict because of the scarcity of resources. One goal is attained at the opportunity cost of another. For example, economic growth can conflict with the environment in that it leads to congestion, air pollution, urban sprawl and garbage piling.