If One Cannot Monitor Prison Quality Then Privatizing Prisons Would

question 240

Multiple Choice

If one cannot monitor prison quality then privatizing prisons would most likely lead to:
I. lower-cost prisons.
II. higher-quality prisons.
III. less guard-inmate violence.

• A) I and III only
• B) I only
• C) III only
• D) I, II, and III

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Definitions:

Common Stock

A type of security that represents ownership in a corporation and grants shareholders voting rights and a share in the company's profits through dividends.

Fair Value

The estimated market price of an asset or liability, reflecting the amount for which it could be exchanged or settled between knowledgeable, willing parties in an arm's length transaction.

Trading Securities

Financial securities purchased by a company, not intended for long-term investment but rather for making a profit in the near term from their sale or trade.

Unrealized Holding Loss

A decrease in the value of an investment that has not yet been sold for cash.