Which of the Following Is Not Likely to Diminish Efficiency

question 1

Multiple Choice

Which of the following is not likely to diminish efficiency?

• A) Lack of adequate expertise and information
• B) Lack of adequate operation and maintenance budgets
• C) When government bureaucrats are not adequately held accountable
• D) When households are required to pay a user fee for the infrastructure service

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Definitions:

Economic Life

The period over which an asset is expected to be economically useful to the owner.

Warranty

A guarantee provided by a seller that a product will meet certain performance standards or an offer to repair or replace defective goods within a certain time frame.

Implicit Rate Of Return

An interest rate that equates the present value of expected future cash flows of an investment to its initial cost.

Incremental Borrowing Rate

The interest rate a lessee would have to pay to borrow on a collateralized basis over a similar term the funds necessary to purchase an asset.