Which of the Following Factors Explains Why Managers of Government

question 192

Multiple Choice

Which of the following factors explains why managers of government agencies (the public sector) have little incentive to operate efficiently?

• A) It is relatively easy for voters to detect operational inefficiency in the public sector and do something to correct it.
• B) Public-sector managers face fierce competition.
• C) Public-sector managers have no fear of losses and bankruptcy when operational efficiency is not achieved.
• D) All of the above explain why government agencies have little incentive to be efficient.

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Definitions:

Percentage Change

A mathematical calculation to determine the degree of change over time, expressed as a percentage.

Imports

Goods or services brought into one country from another, contributing to the supply in the domestic market and affecting the nation's trade balance.

Exports

Goods or services produced in one country and sold to buyers in another, contributing to national income.

GDP

Gross Domestic Product (GDP) is the total market value of all final goods and services produced within a country in a specified period.