Use the Fact Situation in Q2 to Answer the Related

question 38

Multiple Choice

Use the fact situation in Q2 to answer the related question that follows. Given the bankruptcy of General Widgets,the incorporation of the new company by George is

• A)a fraudulent assignment.
• B)a reviewable transaction.
• C)a fraudulent preference.
• D)a fraudulent transfer.
• E)none of the above

Evaluate the role and impact of public choice theory on understanding and improving the efficiency of public sector outcomes.

Understand the motivations and incentives that influence politicians and government officials' behavior within the public choice theory framework.

Explain how the principles that predict behavior in the private sector can also be applied to understand behavior in the public sector.

Contrast the efficiency and characteristics of market allocation with those of political processes.

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Definitions:

Marginal Productivity

The extra output that is produced by using one more unit of a variable input, while keeping the quantities of other inputs constant.

Value of Marginal Product

The additional revenue generated by employing one more unit of a factor of production, holding other factors constant.

Demand for Labor

The employers' desire for hire based on the available wages, the skill levels required, and the overall need for labor to perform tasks.

Supply of Labor

The total amount of labor, in terms of hours or the number of workers, that is available for employment in the economy at a given wage rate.