Public Choice Analysis Suggests That Bureaucrats and Public-Sector Managers Have

question 118

Multiple Choice

Public choice analysis suggests that bureaucrats and public-sector managers have a strong incentive to

• A) economize on their spending so more funds will be available for other government programs.
• B) ensure that their budget is exactly the size that would be considered economically efficient.
• C) expand their budgets to sizes beyond what would be considered economically efficient.
• D) keep individual legislators fully informed as to every expenditure.

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Definitions:

Capital Balances

The amount of money that each partner in a partnership has contributed and retains in the business.

Noncash Assets

Assets that are physical or intangible properties owned by a business, which are not in the form of cash or easily convertible to cash.

Personally Insolvent

Personally Insolvent refers to an individual's financial state where they are unable to pay their debts as they come due.

Claims of Creditors

The rights of creditors to receive payment from a debtor's assets.