Inter-program efficiency judges competing programs and allocates resources to the program that produces the greatest net benefits. Which statement best describes this concept?

• A. Evaluates a single program in isolation.
• B. Allocates resources among competing programs based on net benefits.
• C. Cancels underperforming programs automatically.
• D. Measures efficiency within a single program only.

Answer: (B)

Inter-program efficiency is about comparing several programs and directing scarce resources to the option that yields the highest overall value. The key is evaluating each program by its net benefits—subtracting the costs from the benefits—and then allocating resources to the program with the greatest net benefit. This approach makes the decision rule about maximizing total welfare across competing options, not just improving one program in isolation.

For example, if one program offers higher net benefits than another, funds should flow to that program to boost total benefits. This doesn’t mean only funding one program forever; it means using the net-benefit comparison to guide how resources are distributed among competing options to maximize overall gains.

Other statements miss this cross-program comparison. Evaluating a single program in isolation ignores how it stacks up against alternatives. Measuring efficiency within a single program focuses on internal performance rather than how it compares to other options. Automatically cancelling underperforming programs describes a consequence rather than the decision rule based on net benefits.