Which of the Following Represents Why Private Production Tends to Be

question 175

Multiple Choice

Which of the following represents why private production tends to be more efficient then government production?

• A) Politicians have a strong incentive to support projects that have immediate and easily recognized benefits and distant and unidentifiable costs, even if the total costs outweigh the total benefits.
• B) Politicians have a strong incentive to support programs where the benefits are highly concentrated on special interest groups and the costs are widely dispersed among voters, even if the total costs outweigh the benefits.
• C) Private companies face a profit motive that keeps them operating efficiently, government bureaucracies use taxpayer money and, therefore, do not face this profit motive.
• D) All of the above are reasons why private production tends to be more efficient then government production.

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Definitions:

Amides

Organic compounds containing a carbonyl group (\(C=O\)) linked to a nitrogen atom (\(N\)), important in forming the structure of proteins.

Hydrolyze

The chemical process of breaking a chemical bond in a molecule using water.

Esters

Organic compounds resulting from the reaction of an acid (often carboxylic) with an alcohol, characterized by sweet smells and used in flavorings and solvents.

Major Organic Product

The primary substance produced in the highest yield during an organic chemical reaction.