Which of the Following Programs Would NOT Be Favored by Economists

question 142

Multiple Choice

Which of the following programs would NOT be favored by economists Hart, Shleifer, and Vishny and why?

• A) Public prisons replace private prisons because tight budget constraints reduce the incentive to increase quality.
• B) Public prisons replace private prisons because the profit motive increases the incentive to increase quality.
• C) Private prisons replace public prisons because the profit motive encourages cost-cutting at the expense of quality.
• D) Private prisons replace pubic prisons because slack budget constraints increase the incentive to increase quality.

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Definitions:

Committed Position

A stance in a negotiation or argument that a party insists on and is unwilling to change, often making it harder to reach a compromise.

Skilled Negotiators

Individuals who excel in navigating negotiation processes, effectively managing communication, relationships, and tactics to achieve desired outcomes.

Settlement

The resolution or agreement reached after a dispute or negotiation.

Concession

An act of yielding or compromising in a disagreement, where one party agrees to make a change or give up something in order to reach an agreement.