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Economic Theory Implies That the Incentive for a Manager of a Publicly

Question 136

Multiple Choice

Economic theory implies that the incentive for a manager of a publicly operated firm (for example, a state university or the post office) to promote internal efficiency of their operations would be


A) strong because inefficiency is easily detected and leads to the loss of voter support.
B) strong because public officials are unconcerned about personal gain.
C) weak because government employees are less educated than employees who work in the private sector.
D) weak because it is difficult for voters to detect inefficiency and for public officials to gain from actions that would improve the efficiency of government.

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