What Are Governments Using When They Contract with Private Firms

question 44

Multiple Choice

What are governments using when they contract with private firms to produce public goods and services?

• A)the external organization of government
• B)the internal organization of government
• C)the market to supply the product
• D)domestic production to supply the product
• E)foreign production to supply the product

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Definitions:

Independent Contractors

Individuals or companies hired to perform specific tasks for a business but are not considered employees.

Agents

Individuals or entities authorized to act on behalf of another person or organization in business or legal matters.

Employees

Individuals who are hired by an employer to perform specific duties or services in exchange for remuneration, forming the workforce of a company or organization.

Principal

In legal and financial contexts, the main party to a transaction or the original amount of money invested or loaned, before interest.