Which of the Following Is an Example of an Efficiency

question 36

Multiple Choice

Which of the following is an example of an efficiency measure?

• A)Cost per client placed in an appropriate job.
• B)Cost per ton of garbage collected.
• C)Cost per gallon of water suitable for drinking.
• D)Cost per child reading at grade level.

Identify how government interventions (e.g., taxes) can affect market outcomes in the presence of externalities.

Analyze the impact of transaction costs on the ability to achieve efficient solutions to externality problems.

Distinguish between the concepts of internalizing externalities and the role of property rights in this process.

Understand the relationship between marginal social benefit, marginal social cost, and the efficient quantity of pollution or externalities.

---

Definitions:

Depreciation

The allocation of an asset's cost over its useful life, reflecting a decrease in the value of tangible and intangible assets over time.

Subsidies

Financial support provided by the government to organizations or individuals, making goods or services more affordable.

Transfer Payments

Payments made by the government to individuals without any services or goods being received in return, such as welfare payments or social security benefits.

GDP

Gross Domestic Product entails the comprehensive valuation of every good and service produced in a country over a particular period, serving as a gauge for economic performance.