If Bureaucrats Seek to Maximize the Size of Their Budgets

question 31

Multiple Choice

If bureaucrats seek to maximize the size of their budgets, they will:

• A)seek to fund levels of services up to the point at which MSC = MSB.
• B)seek to fund levels of services for which TSB > TSC.
• C)seek to fund levels of services for which MSC > MSB.
• D)both (b) and (c) are correct.

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Definitions:

Quantity

The amount or number of a material or immaterial good considered as a unit or in total.

Corn Seed

The seed of the corn plant, used for planting to produce corn crops; an essential agricultural product.

Yield Per Acre

The amount of a crop produced on one acre of land.

Lemonade Market

A hypothetical or real market scenario used to explain basic economic concepts, often involving the buying and selling of lemonade.