Refine this word faster
First best
"First best" in a Sentence (2 examples)
Here the government should avoid any policy that affects the workers' decision rules since it would harm efficiency, and the first-best way of pursuing distributional goals is through lump-sum transfers.
Without a tariff, the competitive equilibrium outcome coincides with the first best allocation.
See also for "first best"
Next best steps
Mini challenge
Unscramble this word: firstbest