Which of the Following Would Be Efficient from an Economic

question 52

Multiple Choice

Which of the following would be efficient from an economic perspective?

• A)​Reducing the crime rate to zero
• B)​Changing speed limits and safety requirements so that there were no traffic fatalities or injuries each year.
• C)​Completely eliminating the emission of greenhouse gases
• D)​None of the above would be efficient from an economic perspective.

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Definitions:

Perpetuity

A type of annuity that pays a fixed amount of money indefinitely, with no end date.

Interest Rates

The amount charged by lenders to borrowers for the use of money, expressed as a percentage of the principal.

Nominal Rate

The interest rate set by the lending institution, not adjusted for inflation, representing the actual yearly cost of funds over the term of a loan.

Compounding Period

The period of time after which interest is credited to the depositor’s account for purposes of computing subsequent interest.