The outcome from a voucher scheme is efficient when the government makes the value of the voucher equal to
A) marginal external benefit.
B) marginal external cost.
C) external benefit.
D) external cost.

Question

Quizplus · Accepted Answer

When the value of a voucher is equal to the marginal external benefit, it aligns the private incentives with the social benefits, leading to an efficient outcome.

The Outcome from a Voucher Scheme Is Efficient When the Government