​When Decision Rights Are Decentralized,typically

question 34

Multiple Choice

​When decision rights are decentralized,typically

• A)​decisions are being moved to those with less of the relevant information
• B)decisions are being moved from those with stronger incentives to make good decisions
• C)decisions are being moved from those with more of the relevant information
• D)​decisions are being moved from those with weaker incentives to make good decisions

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Definitions:

Externalities

Economic side effects or by-products that affect an uninvolved third party; can be either positive or negative.

Public Goods

Items that are non-excludable and non-rivalrous, meaning they can be enjoyed by everyone, regardless of whether they contribute to their provision.

Protective Function

Activities carried out by the government to safeguard the economy and its agents, such as regulation and enforcement.