Question 21 (1 point)

Which of the following best represents the decision criteria for contracting or outsourcing publicly produced goods and services?

Question 21 options:

1)	If private production is less than public production minus the continuing cost of monitoring, the government should choose contracting
2)	Governments should always contract to improve efficiency
3)	If private production minus monitoring costs is greater than public production, the government should choose contracting.
4)	If private production minus monitoring costs is less than public production, the government should choose contracting.
5)	Contracting is inefficient

Question 22 (1 point)

The concept that services should be provided by the government at the lowest level that provide them efficiently is known as:

Question 22 options:

1)	The benefit principle
2)	The fiscal federalism principle
3)	The subsidiarity principle
4)	Public choice
5)	Unfunded mandate

Question 23 (1 point)

IRR:

Question 23 options:

1)	always disagrees with the results found when conducting a CBA and calculating NPV
2)	always misleading; do not use it
3)	The same calculation as NPV except you divide by PV(costs) instead of subtracting PV(costs)
4)	is easy to explain to decision-makers but can be misleading
5)	always agrees with the results found when conducting a CBA and calculating NPV