The Basic Difference Between a Public Bureau and a Market

question 131

Multiple Choice

The basic difference between a public bureau and a market firm is that the bureau

• A)has an incentive to maximize profits
• B)has no incentive to minimize costs
• C)managers do not attempt to maximize their self interest
• D)managers are more likely to be concerned with the public interest than their own self interest
• E)faces a budget constraint placed up it by the voters

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Definitions:

Compounded Semi-annually

Interest computation technique where the sum earns interest twice annually, compounding the overall growth over time.

Monthly Payment

A fixed payment amount made by a borrower to a lender at agreed upon intervals, commonly used in loan agreements.

Interest

The cost of borrowing money or the income received from lending money, usually expressed as a percentage of the principal.

Compounded Monthly

The process where interest is calculated and added to the principal sum on a monthly basis.