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:

Policy Changes

Modifications or adjustments to existing rules, regulations, or laws enacted by a governing body.

Agricultural Adjustment Act

A U.S. federal law of the New Deal era designed to boost agricultural prices by reducing surpluses.

Agricultural Prices

The amount of money required to purchase agricultural products, which can fluctuate based on factors like supply, demand, weather conditions, and market trends.

Supply

The total amount of a product or service available for purchase at any given price level in a given market.