If the construction of a new elementary school would create $5 million worth of benefits for citizens and cost $7 million to construct, then using the criterion of economic efficiency, the school

A) should be built.
B) should not be built.
C) results in a substantial improvement to the welfare of society.
D) should be built if it passes by a majority vote.

Economic Efficiency

A state in which resources are allocated in a way that maximizes the total benefits received by all individuals in an economy.

Benefits

Advantages or payments made to individuals or employees, which can include health insurance, retirement plans, and other perks beyond basic salaries.

Costs

The expenses incurred in the process of producing or providing goods and services.