How do limited and bundled choice contribute to government inefficiency?
Please provide the best answer for the statement.
In the private sectors, consumers typically purchase just the amount and type of good they want because the purchase of one good is separate from the decision to purchase another good. By contrast, in the public sector, public goods are bundled together through legislative bills or other political actions, so elected representatives do not have the option to select only the individual public good they want to support and make a discrete choice on each public good expenditure included in legislation. The only option that the elected representatives have is to support the bundle, some of which they may like and others of which they may oppose. This means that when legislation is passed, some of it may be good and useful, but some of it may not be, but it is still supported because it is part of the bundle.
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Country A has a lower stock of capital than Country B, but the supply of labor in both the countries is equal
A) An additional unit of capital will increase output in Country A only if there is an increase in the total efficiency units of labor. B) The increase in output due an additional unit of capital will be larger in Country A than in Country B. C) The increase in output due an additional unit of capital will be smaller in Country A than in Country B. D) An additional unit of capital will increase output in Country B only if there is an increase in the total efficiency units of labor.
Spending more time commuting in exchange for a lower monthly rent refers to a(n):
A) barter. B) trade-off. C) externality. D) monetary exchange.
Recall the four types of goods. Are national defense and basic research the same type of good? Briefly explain
Income inequality is
A. Often greatest in the poorest countries. B. An issue because households in the lowest quintile receive more than their share of income. C. Often greatest in the richest countries. D. Not an issue in the United States because of the redistribution of income through the federal tax system.