How Might the Issues Surrounding Public and Private Prisons Be

question 164

Multiple Choice

How might the issues surrounding public and private prisons be similar to those of nonprofit and for-profit nursing homes?

• A) For-profit nursing homes might have higher costs than nonprofit nursing homes, but the higher costs are from better patient care.
• B) For-profit nursing homes might have lower costs than nonprofit nursing homes, but the lower costs might result in poor quality patient care.
• C) For-profit nursing homes might have higher costs than nonprofit nursing homes, but the higher costs might result in superior patient care.
• D) Compared with nonprofit nursing homes, for-profit nursing homes are less likely to adapt to changing market conditions.

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Definitions:

Insider Trading

Refers to illegal practice where trade of a company's stock is undertaken by people who have access to non-public, material information about the company.

Tying Contract

A requirement imposed by a seller that a buyer purchase another (or other) of its products as a condition for buying a desired product; a practice forbidden by the Clayton Act.

Price-fixing

An illegal agreement among competitors to maintain prices at a certain level, preventing the forces of competition from dictating market prices.

Sherman Act

The federal antitrust law of 1890 that makes monopoly and conspiracies to restrain trade criminal offenses.