Question
(T/F)When Wayne County contracts with nonprofits Gateway and Carelink for the management of mental health services, it's an example of indirect contracting. 172. (T/ F)
(T/F)When Wayne County contracts with nonprofits Gateway and Carelink for the management of mental health services, it's an example of indirect contracting.
172. (T/ F) The inefficiency that is associated with a lack of competition for the goods and services delivered by government agencies is an important reason for contracting out.
173. (T/ F) A reason that governments may favor contracting with businesses as opposed to nonprofits is that opportunism is less likely to be a problem with businesses than nonprofits. 174. (T/ F) Only nonprofits and private businesses can engage in opportunism.
175. (T /F) Among other issues, the failed Wayne County jail project is an example of the "hold up" problem that can result when there is only a single contractor able to complete the work can stop work if its demands are not met.
176. (T /F) A common reason that governments pursue a PPP (public-private partnership) is that it does not want the costs of the project to appear on their books.
177. (T /F) When municipalities in urban areas contract out for garbage collection, opportunism is more of a problem because of low contestability and the high costs of monitoring performance.
178. (T /F) When Rock Ventures agreed to pay the capital costs of constructing a new Wayne County jail, with the County making payment to Rock Ventures and paying all of the jail's operating costs, it's an example of a Public Private Partnership.
178. (T /F) Transaction costs include production costs, bargaining costs, and hidden costs. 180. (T /F) Contracting is more likely to be effective when contestability is low.
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