An Efficient Transfer Mechanism

question 50

Multiple Choice

An efficient transfer mechanism:

• A)attempts to transfer as much income as possible.
• B)is not redistributional in nature.
• C)is an income- maintenance institution.
• D)is necessarily Pareto optimal.

---

Definitions:

Depreciable Asset

An asset subject to depreciation, which is the spreading out of its cost over the duration of its useful life.