The economic way of thinking stresses that good intentions l

*The economic way of thinking stresses that good intentions lead to sound policy\" Is this statement true or false? Explairn your answer.

Solution

The statement is false.

If we think that good intentions lead to sound policy, we are not thinking in economic way. Economic way of thinking means looking at things by the benefits they generate. We are thinking economically when we analyse things or actions by analysing whether or not they are generating more benefit that what they cost.