When the Federal Government Owns Parks That Are Funded by Tax

question 131

Multiple Choice

When the federal government owns parks that are funded by tax dollars,

• A) park managers receive full information about visitor desires and make decisions accordingly.
• B) the same incentive structure exists for public park managers as private park managers.
• C) park managers devote much time and effort to satisfying political desires instead of visitor desires.
• D) park managers will be less likely to mismanage the park.

---

Definitions:

Campers' Utility

The satisfaction or happiness derived by campers from engaging in camping activities, possibly influenced by factors like location, weather, or equipment.

Profit Functions

Mathematical functions that represent the profit of a firm or business based on various inputs, costs, and outputs.

Advertising Expenditures

Advertising expenditures refer to the amount of money spent on advertising products or services, aiming to increase consumer awareness and consequently sales.

Socially Efficient

A state in which a market or economy allocates resources in a way that maximizes the benefit to society as a whole, considering both private and external effects.