Question

The problem of effectively aggregating and conveying information from bottom layers to top layers in massive government bureaucracies makes it hard for the high-level officials to A. discern the prices of specific goods and services in the economy. B. comprehensively assess the marginal costs and benefits of specific programs. C. monitor the incomes of individual firms and households. D. estimate the total amount of spending incurred by the government.

Answer 1

Answer:

The answer is: B) comprehensively assess the marginal costs and benefits of specific programs.

Explanation:

This is true for many big companies, not only government programs or entities. The problem is that the government bad resource use affects us all (its resources are our money).

Imagine a housing program that is being run in a small town in northern Texas. How many people receive information about that program before the national Secretary of Housing and Urban Development finally gets to see a little entry with a number besides it that represents that program.

This happens in all big businesses. Do you think Tim Cook knows or should know who is the employee of the month at an Apple Store in Montevideo, Uruguay? The problem is that Apple can do whatever it wants with its money, the government shouldn't.