Which of the Following Programs Would NOT Be Favored by Economists

question 142

Multiple Choice

Which of the following programs would NOT be favored by economists Hart, Shleifer, and Vishny and why?

• A) Public prisons replace private prisons because tight budget constraints reduce the incentive to increase quality.
• B) Public prisons replace private prisons because the profit motive increases the incentive to increase quality.
• C) Private prisons replace public prisons because the profit motive encourages cost-cutting at the expense of quality.
• D) Private prisons replace pubic prisons because slack budget constraints increase the incentive to increase quality.

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Definitions:

Subtle Differences

Minor or not immediately obvious variations between objects, ideas, or situations, often requiring careful analysis to detect.

Gestalt Grouping

A principle in psychology that the mind tends to perceive objects as organized patterns or wholes, rather than as separate components.

Good Continuation

Good continuation is a principle in Gestalt psychology that individuals have a tendency to perceive continuous patterns in stimuli rather than abrupt changes.

Reversible Figures

Visual illusions where the brain switches between seeing two different images or perspectives in the same picture.