Which of the Following Best Describes Allocative Efficiency

question 13

Multiple Choice

Which of the following best describes allocative efficiency?

• A) Producing a medical service at the lowest possible cost.
• B) Constructing a new medical facility to exactly offset a market shortage of such services.
• C) Increasing the amount of hospital beds available such that each person in the population served has a bed allocated to him/her.
• D) None of the above.
• E) More than one of the above statements is true.

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Definitions:

FICA

refers to the Federal Insurance Contributions Act tax, a United States federal payroll (or employment) tax imposed on both employees and employers to fund Social Security and Medicare—federal programs that provide benefits for retirees, the disabled, and children of deceased workers.

Unemployment

A situation where an individual who is actively searching for employment is unable to find work.

FUTA

The Federal Unemployment Tax Act, a United States federal law that funds state workforce agencies and unemployment insurance for workers who have lost their jobs.

Workers' Compensation

Insurance provided by employers covering medical expenses and lost wages for employees injured at work or who contract a work-related illness.