The managers of government bureaucracies have an incentive to _____
a. maximize the size of their budgets
b. minimize the size of their staff
c. maximize the profits from their bureaus
d. minimize rent-seeking
a
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Which of the following is TRUE?
A) Child labor is most common in urban areas. B) Child labor is most common in the textile industry. C) Child labor is most common in production aimed at export markets. D) If child labor were stopped, families would have greater economic success. E) Agriculture is the main industry using child labor.
What is viewed in the private sector as competition in the public sector is treated as _____
a. duplication b. destruction c. fighting d. economic warfare
Proponents of the notion of a "political business cycle" suggest that:
A. a possible cause of economic fluctuations is due to the use of fiscal policy for political purposes. B. cyclical swings in the economy are produced by the inherent instability found in capitalist economies. C. the cyclically adjusted budget is a better indicator of the state of the economy than the actual budget. D. there is a trade-off among goals that tends to make the economic policies of state and local governments procyclical.
An important routine function of the Federal Reserve Bank is to:
A. help large commercial banks develop correspondent relationships with smaller commercial banks. B. advise commercial banks as to the most profitable ways of reinvesting profits. C. provide facilities by which commercial banks and thrift institutions may collect checks. D. supervise the liquidation of the assets of bankrupt state banks.