In Order for a Policy Option to Achieve Allocative Efficiency

question 18

Multiple Choice

In order for a policy option to achieve allocative efficiency,

• A) PVNB must be maximized
• B) PVB must be minimized
• C) PVC must be minimized
• D) (PVB - PVC) must be minimized

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Definitions:

Storming of Bastille

An iconic event of the French Revolution on July 14, 1789, when revolutionaries stormed the Bastille prison, a symbol of royal tyranny.

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An institution for the confinement of people who have been remanded in custody or convicted of crimes, serving as a form of punishment and rehabilitation.

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A form of government where a single entity rules with absolute power, without any democratic processes or checks and balances.

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Governing document or set of fundamental principles that outlines the structure and practices of a governmental entity.