Discuss the implications of a new government policy

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Economist A and Economist B get together to discuss the implications of a new government policy that will move a military base from State X to State Y to reduce its operating costs. Economist A claims that he favors the new policy because the economic outcome is Pareto Efficient, while Economist B agrees that the outcome is Pareto Efficient but he does not favor the policy because the outcome benefits State Y at the expense of State X. Who is right? What are your thoughts about such a policy?

Reference no: EM131173139

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