The efficient transfer mechanism:
A)is similar to the topping- up mechanism.
B)cannot be employed to help poor people.
C)is easy to implement in real world.
D)is using a lump- sum transfer to insure efficiency.

Question

Quizplus · Accepted Answer

The efficient transfer mechanism often involves using lump-sum transfers to ensure that resources are allocated efficiently without distorting economic incentives.

The Efficient Transfer Mechanism