Economic Theory Implies That the Incentive for a Manager of a Publicly

question 176

Multiple Choice

Economic theory implies that the incentive for a manager of a publicly operated firm (for example, a state university or the post office) to promote internal efficiency of their operations would be

• A) strong because inefficiency is easily detected and leads to the loss of voter support.
• B) strong because public officials are unconcerned about personal gain.
• C) weak because government employees are less educated than employees who work in the private sector.
• D) weak because it is difficult for voters to detect inefficiency and for public officials to gain from actions that would improve the efficiency of government.

Identify opportunities for triangular arbitrage and execute calculations to determine potential profits.

Understand the role of risk-free rates in international financial decisions.

Apply exchange rate information to convert values between different currencies for practical applications such as travel and purchasing.

Comprehend how inflation rate differentials between countries affect currency value and exchange rate movements.

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Definitions:

Value

The importance a person attaches to something; values are also tied to the enduring belief that one’s mode of conduct is better than another mode of conduct.

Pragmatist Values

A set of beliefs that prioritize practicality and efficiency in solving problems and making decisions, often with a focus on results over abstract principles.

Tangible Accomplishments

Achievements or results that are concrete and can be seen or measured, often providing a sense of satisfaction.

High Income

A term referring to significantly higher earnings compared to the average level for a given area, group, or context.