According to William Niskanen's model of bureaucracy,Congress tends to approve a bureau's budget at a level where

Question

Quizplus · Accepted Answer

According to Niskanen's model of bureaucracy, bureaucrats aim to maximize their agency's budget, so they will provide Congress with an exaggerated estimate of the agency's output and understate the cost. Congress tends to approve the budget at a level where the marginal cost of the last unit of the bureau's output is greater than the marginal value, which means some of the bureau's activities are not cost-effective but are still funded by Congress to keep the agency in operation. This is known as the "ratchet effect" of bureaucracy. Therefore, choice B is the best answer.

According to William Niskanen's Model of Bureaucracy,Congress Tends to Approve