Public Choice Analysis Suggests That Bureaucrats and Public-Sector Managers Have

question 118

Multiple Choice

Public choice analysis suggests that bureaucrats and public-sector managers have a strong incentive to

• A) economize on their spending so more funds will be available for other government programs.
• B) ensure that their budget is exactly the size that would be considered economically efficient.
• C) expand their budgets to sizes beyond what would be considered economically efficient.
• D) keep individual legislators fully informed as to every expenditure.

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Definitions:

Current Ratio

An indicator measuring a corporation's potential to handle its short-term financial obligations with assets on hand.

Common Size

A financial analysis technique that expresses each line item in a financial statement as a percentage of a base figure, aiding in comparison across different financial periods or companies.

Financial Statements

Documents that provide an overview of a company's financial condition in both short and long term, including balance sheet, income statement, and cash flow statement.

Stakeholders

Individuals or groups who have an interest in the success or performance of a company, including employees, customers, investors, suppliers, and the community.