The Outcome from a Voucher Scheme Is Efficient When the Government

question 70

Multiple Choice

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

• A) marginal external benefit.
• B) marginal external cost.
• C) external benefit.
• D) external cost.

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Definitions:

Item Value

The worth or usefulness of a specific good or service, often determined by factors like utility, demand, and rarity.

Ownership

The legal right or status of having control over something, typically property or goods.

Traditional Economic Theory

A framework that explains economic decisions and behaviors based on the assumption that agents are rational and seek to maximize utility or profit.

Demand Curves

Graphs showing the relationship between the price of a good and the quantity demanded by consumers at those prices.