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Fire Departments Receive Their Revenues from Government Budgets,but Not on a Per-Fire-Extinguished

Question 174

Multiple Choice

Fire departments receive their revenues from government budgets,but not on a per-fire-extinguished basis.Which of the following is likely to be true in this case?


A) Elected officials will have the ability to dig into the budget and cut particular items.
B) It will be difficult for department officials to know if too much or too little fire protection is being supplied.
C) Governments will contract directly with private firms to produce public goods and services like firefighting services, because private firms have more incentives to maximize profits than bureaus do.
D) Governments will prefer using public bureaus, because bureaus cover their costs by selling goods and services like firefighting services in the market.
E) Governments will contract directly with private firms to produce public goods and services like firefighting services, because better-trained firefighters will be provided by private firms.

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