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The Incentive for Managers of a Government-Operated Firm (For Example

Question 143

Multiple Choice

The incentive for managers of a government-operated firm (for example, a state university or the U.S. Post Office) to operate efficiently will be


A) low because all government workers are lazy.
B) low because there are no residual claimants to monitor and institute cost-reducing measures.
C) high because government employees and officials will be less concerned with personal gain.
D) high because voters can easily detect those who are to blame for inefficiencies and replace them.

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