Despite Many Differences, the Market and Public Sectors Are Similar

question 168

Multiple Choice

Despite many differences, the market and public sectors are similar in which one of the following respects?

• A) In both sectors, income (or power) is distributed on the basis of the same criterion.
• B) Consumers in the market sector and voters in the public sector are equally well informed.
• C) Voluntary exchange, rather than compulsion, is characteristic of both sectors.
• D) It will be costly to use scarce goods, whether through the private or the public sector.

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Definitions:

Marginal Revenue Product

The extra income produced by using an additional unit of a production resource.

Workers

Individuals engaged in some form of employment, contributing labor for the production of goods or services.

Marginal Revenue Product

The additional revenue generated from using one more unit of a factor of production, holding all other factors constant.

Third Worker

The hypothetical or actual addition of a third employee in a production process, often considered in discussions of productivity and efficiency.