The Basic Difference Between a Public Bureau and a Market

question 131

Multiple Choice

The basic difference between a public bureau and a market firm is that the bureau

• A)has an incentive to maximize profits
• B)has no incentive to minimize costs
• C)managers do not attempt to maximize their self interest
• D)managers are more likely to be concerned with the public interest than their own self interest
• E)faces a budget constraint placed up it by the voters

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Definitions:

Error

The difference between the observed value and the true value due to measurement or estimation inaccuracies.

Multiple Regression Analysis

A method in statistics that employs multiple predictor variables to estimate the result of a dependent variable.

SSE

Sum of Squared Errors, a measure of the discrepancy between the data and an estimation model, indicating the total deviation of data points from the fitted values.

Estimated Income

An approximation of the amount of money expected to be earned over a specific period.