The Downsides of A(n)_____ Financial Organization Structure Are Higher Costs

question 17

Short Answer

The downsides of a(n)_____ financial organization structure are higher costs (due to having to hire more employees), some unavoidable duplication of effort, and a diminishment of control.

---

Definitions:

Private Consumption

The spending on goods and services by individuals or households, as opposed to public or government spending.

Social Welfare Function

An economic function that ranks societal allocations of resources based on ethical principles, intending to maximize collective satisfaction or utility.

Utility Possibilities Frontier

The utility possibilities frontier is a graphical representation depicting the different distributions of utility maximization between two agents given a fixed set of resources.

Income Distribution

Income distribution refers to the way in which total income is shared among the members of a society.