Under What Circumstance Are Bureaucrats Most Likely to Exercise Discretion

question 26

Multiple Choice

Under what circumstance are bureaucrats most likely to exercise discretion?

• A) when an agency is creating environmental regulations
• B) when an agency is under congressional investigation
• C) when an agency is implementing a law that contains ambiguity
• D) when an agency is elevated to the status of a Cabinet department
• E) when an agency is proposing legislation

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Definitions:

Perfect Competition

A market setup where numerous buyers and sellers interact, offering identical products, with no barriers to entry or exit, and complete transparency of information, resulting in suppliers having no control over prices.

Monopoly

A market structure characterized by a single seller, selling a unique product in the market. This seller faces no competition, as he is the sole seller of goods with no close substitute.

Output

refers to the total amount of goods or services produced by a firm, industry, or economy within a certain period.

Profit-Maximizing Rule

A principle stating that profit maximization occurs when a firm expands output until marginal cost is equal to marginal revenue.