Which of the Following Is Not an Example of an Efficiency-Equity

question 133

Multiple Choice

Which of the following is not an example of an efficiency-equity trade-off faced by economic agents?

• A)According to an article by in the American Journal of Public Health by Edward Kaplan and Michael Merson of Yale University School of Medicine,the federal government's current method of allocating HIV-prevention resources is not cost-effective.Instead of allocating resources to states in proportion to reported AIDS cases,resources should flow first to those activities that prevent more infections per dollar and then to less and less effective combinations of programs and populations until funds are exhausted,even if it means that some populations would be left without any prevention services.
• B)Concerned about the falling birth rate,the French government has pledged more money for families with three children,in an effort to encourage working women to have more babies.
• C)The growing demand for corn by ethanol producers has led to a surge in the price of tortillas,a staple in the Mexican diet.To quell public outcry over rising tortilla prices,the Mexican government released government corn stocks at prices well below the market,and pressured states to impose price ceilings on tortillas.
• D)Some U.S.colleges cut back on merit scholarships since these programs siphon money from need-based programs,thus harming lower-income students with greater financial need.

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Definitions:

Warehouse

A large commercial building for storing goods. Warehouses are used by manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc.

Land Valuation

The process of determining the present worth of a piece of land based on its highest and best use, market conditions, and other factors.

Depreciable Cost Basis

The portion of the cost of an asset that can be deducted over time for tax purposes.

Personal-Use Property

Items owned for personal enjoyment or use, such as a residence or car, that typically do not qualify for tax deductions or depreciation.