The reason for the efficient transfer mechanism being impractical:
A)it focuses on income levels, not utility.
B)is not related to the ability to assess people's budget line.
C)is related to the lack of fairness.
D)is the impossibility of identifying the appropriate utility curve for each person.

Question

Quizplus · Accepted Answer

Identifying the appropriate utility curve for each person is practically impossible as utility is subjective and varies from person to person. Therefore, it is not a feasible method for implementing efficient transfers.

The Reason for the Efficient Transfer Mechanism Being Impractical