The Fundamental Difference Between Most Private Bureaucracies and Public Bureaucracies

question 74

Multiple Choice

The fundamental difference between most private bureaucracies and public bureaucracies pointed out in the text is that ______.

• A) most private bureaucracies have the explicit goal of making money, so accountability is straightforward
• B) most private bureaucracies are more efficient at serving the public than are public bureaucracies
• C) employees of private bureaucracies are less concerned with the pursuit of self-interest
• D) employees of public bureaucracies are less likely to be chosen for their competence
• E) bureaucracy is a rare form of organization in the private sector, but it is dominant in the public sector

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Definitions:

Holding-Period Return

The total return received from holding an asset or portfolio of assets over a period, typically expressed as a percentage.

Effective (Annualized) Yield

A calculation of the annual return on an investment, taking into account the effect of compounding interest.

Consumer Price Index

An index that measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

Effective Annualized Rate

The interest rate on an investment or loan on an annual basis, taking compounding into account.