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:

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Strategies and actions taken by a government to achieve its goals in various sectors, such as health, education, and economics.

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