In Deciding Between Using a Public Bureau or a Private

question 136

Multiple Choice

In deciding between using a public bureau or a private firm to collect garbage, elected officials may prefer a public bureau because

• A)public bureaus have been shown to be more efficient than private firms in garbage collection
• B)they can convey political favors by giving people jobs in the public bureau
• C)public bureaus will be more responsive to consumers
• D)citizens would have to pay if private firms collected garbage
• E)taxes will be lower if the public bureau is in charge of garbage collection

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Definitions:

Financial Intermediation

The process by which financial institutions such as banks mediate or stand between savers and borrowers to facilitate financial transactions.

Financial Institution

An organization that provides financial services to its clients or members, such as banking, investing, and insurance.

Stocks and Bonds

Securities representing equity ownership in a corporation (stocks) and debt obligations of an entity (bonds), each offering different risk and return profiles.

Securities and Exchange Commission (SEC)

A U.S. government agency responsible for regulating the securities markets and protecting investors.