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:

Direct Materials

Raw materials that can be directly traced to the production of a specific product and are a variable cost.

Standard Cost

A predetermined cost of manufacturing a product or performing a service, used as a benchmark for measuring performance.

Direct Material

Represents raw materials that can be directly attributed to the production of specific goods, directly affecting the finished product's cost and quality.

Units

A measure or quantity used as a standard of measurement for expressing amounts, especially in the context of production or inventory.