The Outcome from a Voucher Scheme Is Efficient When the Government

question 7

Multiple Choice

The outcome from a voucher scheme is efficient when the government makes the value of the voucher equal to

• A)marginal external cost.
• B)marginal external benefit.
• C)private external cost.
• D)private external benefit.
• E)marginal social cost.

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Definitions:

Inattentional Blindness

The phenomenon where an individual fails to perceive an unexpected stimulus in plain sight due to focusing attention on another task, event, or object.

Hallucination

A perception in the absence of external stimulus that has qualities of real perception, often affecting the senses of sight and hearing.

Divided Consciousness

A theory suggesting that during hypnosis, consciousness is divided into two parts: one that is aware of the hypnotist's suggestions and another that retains awareness of reality.

REM Sleep

Rapid Eye Movement sleep, a phase of sleep characterized by rapid movement of the eyes, vivid dreams, and increased brain activity.