Under What Circumstance Are Bureaucrats Most Likely to Exercise Discretion

question 26

Multiple Choice

Under what circumstance are bureaucrats most likely to exercise discretion?

• A) when an agency is creating environmental regulations
• B) when an agency is under congressional investigation
• C) when an agency is implementing a law that contains ambiguity
• D) when an agency is elevated to the status of a Cabinet department
• E) when an agency is proposing legislation

---

Definitions:

Full Cost

The total cost associated with producing a product or providing a service, including both direct and indirect costs.

Contribution Margin

The amount by which the sale of products or services exceeds variable costs, contributing to the coverage of fixed costs and profit generation.

Machine Hour

A unit of measure representing an hour of operation of a machine, used in calculating the cost of running machinery for manufacturing.

Profit Margin

A financial metric that measures the amount of net income earned with each dollar of sales.