The Information-Aggregation Problem Faced by the Top Layers of Government

question 57

Multiple Choice

The information-aggregation problem faced by the top layers of government can make it hard for the high-level officials to:

• A) Discern the prices of specific goods and services in the economy
• B) Comprehensively assess the marginal costs and benefits of specific programs
• C) Monitor the incomes of individual firms and households
• D) Estimate the total amount of spending incurred by the government

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Definitions:

Agency's Requirements

The specific criteria, needs, or conditions that an organization or entity insists must be met or provided.

Discussing

The act of talking about something with someone to share ideas or opinions, or to reach a decision.

Repetitive

Involving or characterized by repeated actions or elements, often to the point of being boring or monotonous.

Written Offer

A formal proposal or bid put in writing, often related to employment, purchase, or sale agreements.