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.

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Definitions:

Understory

The layer of vegetation in a forest that grows at a lower height than the forest canopy, consisting of small trees, shrubs, and groundcover plants.

Tropical Desert

A hot, dry biome found near the equator, characterized by sparse rainfall, extreme temperatures, and limited vegetation and wildlife.

Low Productivity

A condition where there is an inefficient level of output per input, such as labor or resources.

Humid Conditions

Environmental circumstances characterized by high levels of moisture in the air.