1Which stage is commonly associated with the early study of public administration?
stages in the evolution
Easy
A.New Public Management
B.Classical approach
C.Behavioral approach
D.Public choice approach
Correct Answer: Classical approach
Explanation:
The classical approach represents an early stage in the development of public administration.
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2Which approach focused strongly on formal organization and administrative principles?
stages in the evolution
Easy
A.New Public Administration
B.Classical approach
C.Public choice approach
D.Human relations approach
Correct Answer: Classical approach
Explanation:
The classical approach emphasized formal structures, hierarchy, and administrative principles.
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3Which stage emphasized the importance of human behavior in organizations?
stages in the evolution
Easy
A.Public choice approach
B.Legal approach
C.Classical approach
D.Human relations approach
Correct Answer: Human relations approach
Explanation:
The human relations approach highlighted employee needs, motivation, and informal relationships.
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4The behavioral approach in public administration mainly studies which factor?
stages in the evolution
Easy
A.Human behavior
B.Physical buildings
C.Court procedures
D.Budget totals
Correct Answer: Human behavior
Explanation:
The behavioral approach examines how individuals and groups behave in administrative settings.
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5Which approach gave greater attention to administrative efficiency and measurable results?
stages in the evolution
Easy
A.Human relations approach
B.New Public Management
C.Traditional legal approach
D.Classical approach
Correct Answer: New Public Management
Explanation:
New Public Management stresses efficiency, performance measurement, and results.
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6What is a major concern of New Public Administration?
new public administration
Easy
A.Social equity
B.Religious authority
C.Private profit
D.Military expansion
Correct Answer: Social equity
Explanation:
New Public Administration emphasizes fairness and equal access to public services.
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7New Public Administration developed partly in response to concerns about which issue?
new public administration
Easy
A.Office decoration
B.Industrial design
C.Social inequality
D.Foreign exchange
Correct Answer: Social inequality
Explanation:
New Public Administration responded to social problems and inequalities that traditional administration often overlooked.
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8Which value is closely linked with New Public Administration?
new public administration
Easy
A.Secrecy
B.Monopoly
C.Responsiveness
D.Impersonal growth
Correct Answer: Responsiveness
Explanation:
New Public Administration encourages public agencies to respond to citizens' needs.
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9New Public Administration views public administrators as having a responsibility to promote what?
new public administration
Easy
A.Organizational secrecy
B.Political inheritance
C.Justice
D.Market dominance
Correct Answer: Justice
Explanation:
Justice and fairness are important goals of New Public Administration.
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10Which statement best describes New Public Administration?
new public administration
Easy
A.It supports profit as the main goal.
B.It focuses only on formal rules.
C.It rejects all public services.
D.It links administration with social values.
Correct Answer: It links administration with social values.
Explanation:
New Public Administration connects administrative practice with values such as equity, participation, and justice.
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11What is the main focus of New Public Management?
new public management
Easy
A.Efficiency and performance
B.Removal of all targets
C.Ceremonial administration
D.Complete secrecy
Correct Answer: Efficiency and performance
Explanation:
New Public Management seeks to improve public services through efficiency, performance, and results.
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12New Public Management often applies ideas from which sector to government?
new public management
Easy
A.Religious sector
B.Private sector
C.Military sector
D.Agricultural sector
Correct Answer: Private sector
Explanation:
New Public Management adapts selected business practices for use in public organizations.
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13Which practice is associated with New Public Management?
new public management
Easy
A.Performance measurement
B.Unlimited procedures
C.Permanent secrecy
D.Removal of accountability
Correct Answer: Performance measurement
Explanation:
Performance measurement helps assess whether public organizations are achieving their objectives.
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14In New Public Management, citizens are often viewed as what?
new public management
Easy
A.Employees
B.Shareholders
C.Customers
D.Judges
Correct Answer: Customers
Explanation:
New Public Management often treats citizens as customers who receive public services.
Incorrect! Try again.
15Which method may be used in New Public Management to deliver public services?
new public management
Easy
A.Banning evaluation
B.Ending all services
C.Ignoring service quality
D.Contracting out
Correct Answer: Contracting out
Explanation:
Contracting out allows an external organization to provide a service on behalf of the government.
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16The public choice approach applies economic reasoning to the study of what?
public choice approach
Easy
A.Literary styles
B.Weather patterns
C.Political and administrative decisions
D.Historical monuments
Correct Answer: Political and administrative decisions
Explanation:
Public choice uses economic ideas to examine decisions made in politics and public administration.
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17According to the public choice approach, public officials are generally assumed to be motivated by what?
public choice approach
Easy
A.Natural forces
B.Cultural symbols
C.Random behavior
D.Self-interest
Correct Answer: Self-interest
Explanation:
Public choice assumes that individuals, including public officials, may pursue their own interests.
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18Which institution does the public choice approach often compare with a market?
public choice approach
Easy
A.Family
B.Museum
C.Government
D.School
Correct Answer: Government
Explanation:
Public choice examines government decision-making using concepts commonly associated with markets.
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19What problem does the public choice approach often associate with government monopolies?
public choice approach
Easy
A.Greater rainfall
B.Faster population growth
C.Improved artistic quality
D.Lower efficiency
Correct Answer: Lower efficiency
Explanation:
The public choice approach argues that a lack of competition may reduce efficiency in government services.
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20Which idea is supported by the public choice approach as a way to improve public services?
public choice approach
Easy
A.Competition
B.Secrecy
C.Centralization only
D.Unlimited regulation
Correct Answer: Competition
Explanation:
Public choice supporters often believe that competition can encourage better performance and efficiency.
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21A government department is organized around clear functions, formal rules, and a strict hierarchy. Which stage in the evolution of public administration does this arrangement most closely reflect?
stages in the evolution
Medium
A.Public choice approach
B.Participatory governance approach
C.New public management approach
D.Classical administrative approach
Correct Answer: Classical administrative approach
Explanation:
The classical approach emphasizes hierarchy, specialization, formal rules, and administrative efficiency.
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22An administrator improves productivity by studying employee motivation, group relationships, and informal communication. Which intellectual development is being applied?
stages in the evolution
Medium
A.Legal-institutional approach
B.Scientific management approach
C.Human relations approach
D.Public choice approach
Correct Answer: Human relations approach
Explanation:
The human relations approach focuses on morale, motivation, group behavior, and informal organizational relationships.
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23A policy team examines how political, economic, and social factors interact before recommending an administrative reform. This reflects which perspective?
stages in the evolution
Medium
A.Purely legal approach
B.Mechanistic approach
C.Classical approach
D.Ecological approach
Correct Answer: Ecological approach
Explanation:
The ecological approach studies administration in relation to its wider social, political, and economic environment.
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24A reform program treats an agency as a set of interdependent units whose activities affect one another and the external environment. Which perspective is most relevant?
stages in the evolution
Medium
A.Individual-choice approach
B.Traditional legal approach
C.Systems approach
D.Scientific management approach
Correct Answer: Systems approach
Explanation:
The systems approach views an organization as interconnected parts that receive inputs, process them, and produce outputs.
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25Which change best illustrates the movement from traditional public administration toward more contemporary approaches?
stages in the evolution
Medium
A.From public service to private profit
B.From accountability to administrative secrecy
C.From rule compliance to performance results
D.From citizen needs to organizational isolation
Correct Answer: From rule compliance to performance results
Explanation:
Contemporary reforms increasingly supplement procedural compliance with attention to outcomes, quality, and performance.
Incorrect! Try again.
26A public agency gives priority to services for disadvantaged communities, even when those services are more difficult and costly to deliver. Which principle of new public administration is most clearly demonstrated?
new public administration
Medium
A.Profit maximization
B.Organizational centralization
C.Administrative neutrality
D.Social equity
Correct Answer: Social equity
Explanation:
New public administration emphasizes fairness and the equitable distribution of public services and opportunities.
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27A city changes its housing policy after discovering that a formally equal rule disproportionately harms low-income residents. This action best reflects the concern of new public administration with:
new public administration
Medium
A.Maximum managerial autonomy
B.Reduced political involvement
C.Strict procedural uniformity
D.Unequal policy effects
Correct Answer: Unequal policy effects
Explanation:
New public administration examines whether policies produce fair results, not merely whether identical procedures are applied.
Incorrect! Try again.
28Which administrative decision is most consistent with the value-oriented character of new public administration?
new public administration
Medium
A.Avoiding all value judgments in administration
B.Including marginalized groups in policy design
C.Selecting programs solely by operating cost
D.Restricting participation to senior officials
Correct Answer: Including marginalized groups in policy design
Explanation:
New public administration supports responsiveness and participation, especially for groups that have historically lacked influence.
Incorrect! Try again.
29An agency evaluates a program by asking whether it improves living conditions for vulnerable citizens rather than only whether it follows established procedures. This illustrates:
new public administration
Medium
A.A return to rigid hierarchy
B.A concern with relevance
C.A focus on internal discipline
D.A rejection of accountability
Correct Answer: A concern with relevance
Explanation:
New public administration stresses that administration should address significant social problems and produce meaningful public benefits.
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30A public administrator openly supports a reform intended to reduce discrimination in access to government services. Which view of administration does this action represent?
new public administration
Medium
A.Administration as completely value-free
B.Administration as commercially competitive
C.Administration as socially responsible
D.Administration as exclusively technical
Correct Answer: Administration as socially responsible
Explanation:
New public administration rejects the idea that administrators should ignore social values when public programs affect justice and equality.
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31A ministry allows managers to choose how to achieve targets but evaluates them using measurable service indicators. Which feature of new public management is illustrated?
new public management
Medium
A.Political direction without service targets
B.Managerial autonomy with performance control
C.Centralized rules with no evaluation
D.Lifetime administration without measurement
Correct Answer: Managerial autonomy with performance control
Explanation:
New public management combines greater managerial discretion with performance measurement and accountability for results.
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32A government contracts a private firm to collect household waste and compares its results with those of a municipal provider. Which NPM instrument is being used?
new public management
Medium
A.Legislative oversight
B.Administrative integration
C.Competitive contracting
D.Bureaucratic standardization
Correct Answer: Competitive contracting
Explanation:
Competitive contracting introduces market-style competition by allowing providers to compete to deliver public services.
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33A public hospital receives funding partly according to the number and quality of treatments it provides. This arrangement most directly reflects:
new public management
Medium
A.Input-based budgeting
B.Seniority-based allocation
C.Uniform procedural financing
D.Output-based budgeting
Correct Answer: Output-based budgeting
Explanation:
Output-based budgeting links resources to measurable services or results rather than only to inputs such as staff or equipment.
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34A government agency separates policy formulation from service delivery and gives the delivery unit a formal service agreement. Which NPM practice does this represent?
new public management
Medium
A.Agencification
B.Organizational merger
C.Community self-governance
D.Administrative politicization
Correct Answer: Agencification
Explanation:
Agencification creates relatively autonomous units with defined responsibilities, targets, and performance agreements.
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35A manager meets all numerical targets by reducing service quality and excluding difficult cases. What limitation of NPM does this example reveal?
new public management
Medium
A.Customer focus removes all accountability
B.Delegation prevents managerial responsibility
C.Competition always eliminates efficiency
D.Performance measures can distort behavior
Correct Answer: Performance measures can distort behavior
Explanation:
Overemphasis on narrow indicators may encourage organizations to meet targets while neglecting broader service quality or equity.
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36A public choice analyst predicts that elected officials may support a highly visible project because it increases their chances of reelection. Which assumption supports this prediction?
public choice approach
Medium
A.Voters ignore visible policy benefits
B.Bureaucrats avoid all discretionary choices
C.Officials always maximize social welfare
D.Political actors pursue self-interest
Correct Answer: Political actors pursue self-interest
Explanation:
Public choice applies the idea of self-interested behavior to voters, politicians, and bureaucrats within political institutions.
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37A public choice explanation of bureaucratic expansion would most likely argue that agencies grow because:
public choice approach
Medium
A.Managers reject additional authority
B.Citizens always demand smaller government
C.Legislatures prevent organizational growth
D.Bureaucrats seek larger budgets and influence
Correct Answer: Bureaucrats seek larger budgets and influence
Explanation:
Public choice theory suggests that bureaucrats may pursue organizational growth because larger budgets can increase status, power, or career benefits.
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38Several agencies offer similar services, and a reform permits citizens to choose among them using service vouchers. The reform is based mainly on the public choice idea that:
public choice approach
Medium
A.Choice increases administrative secrecy
B.Monopoly guarantees better innovation
C.Central control eliminates all inefficiency
D.Competition can improve service responsiveness
Correct Answer: Competition can improve service responsiveness
Explanation:
Public choice favors competition and user choice as mechanisms for limiting monopoly behavior and encouraging providers to respond to citizens.
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39A narrowly organized interest group obtains a subsidy whose cost is spread across millions of taxpayers. Which public choice concept best explains why the subsidy may persist?
public choice approach
Medium
A.Universal benefits and concentrated costs
B.Concentrated benefits and dispersed costs
C.Administrative neutrality
D.Complete voter information
Correct Answer: Concentrated benefits and dispersed costs
Explanation:
A small group has a strong incentive to lobby for concentrated benefits, while individual taxpayers may have little incentive to oppose small, dispersed costs.
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40A citizen has little incentive to learn the details of a complex budget because the cost of gaining information exceeds the likely personal benefit. This situation illustrates:
public choice approach
Medium
A.Rational ignorance
B.Social equity
C.Organizational learning
D.Managerial autonomy
Correct Answer: Rational ignorance
Explanation:
Rational ignorance occurs when individuals choose not to acquire costly information because the expected personal benefit is very small.
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41Which sequence most accurately represents the broad intellectual movement in public administration from classical to contemporary approaches?
stages in the evolution
Hard
A.Administrative principles, human relations, public choice, and constitutionalism
B.Scientific management, comparative administration, New Public Management, and administrative ecology
C.Politics-administration dichotomy, classical administration, behavioralism, and digital governance
D.Classical administration, behavioral and human-relations approaches, New Public Administration, New Public Management, and governance-oriented approaches
Correct Answer: Classical administration, behavioral and human-relations approaches, New Public Administration, New Public Management, and governance-oriented approaches
Explanation:
This sequence captures the major shifts from structural efficiency, to behavior, to equity, managerial performance, and collaborative governance. The other sequences omit or misorder important stages.
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42An agency introduces standardized procedures but later grants frontline workers discretion after discovering that identical rules produce unequal outcomes across communities. Which evolutionary transition does this best illustrate?
stages in the evolution
Hard
A.A shift from administrative neutrality to administrative ecology
B.A return from democratic administration to the politics-administration dichotomy
C.A replacement of New Public Management by scientific management
D.A movement from classical principles toward behavioral and situational analysis
Correct Answer: A movement from classical principles toward behavioral and situational analysis
Explanation:
Classical theory emphasizes uniform rules and formal structure, whereas behavioral and situational perspectives recognize context, discretion, motivation, and limits to universal principles.
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43Why did the politics-administration dichotomy become increasingly difficult to sustain as a complete description of administrative work?
stages in the evolution
Hard
A.Administrative agencies became entirely independent of elected officials
B.Political institutions stopped influencing budgets and organizational design
C.Administrators began to replace legislatures as constitutional authorities
D.Administrative decisions increasingly involved value choices, implementation discretion, and policy interpretation
Correct Answer: Administrative decisions increasingly involved value choices, implementation discretion, and policy interpretation
Explanation:
Implementation requires judgment about priorities, eligibility, enforcement, and resource allocation, so administration inevitably has policy consequences even when formal authority remains political.
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44A reform program combines hierarchy, professional expertise, citizen participation, performance measurement, and interorganizational networks. What is the most defensible interpretation of this arrangement?
stages in the evolution
Hard
A.It is a pure example of the politics-administration dichotomy
B.It demonstrates that bureaucracy is incompatible with democratic participation
C.It proves that one evolutionary stage has completely displaced all earlier stages
D.It represents institutional layering, in which newer reforms coexist with inherited administrative forms
Correct Answer: It represents institutional layering, in which newer reforms coexist with inherited administrative forms
Explanation:
Administrative evolution is not strictly linear. Older bureaucratic structures often remain while participatory, managerial, and network-based practices are added.
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45Which observation most strongly supports the claim that administrative evolution is context-dependent rather than universally sequential?
stages in the evolution
Hard
A.A country introduces performance contracts while retaining highly centralized personnel rules
B.New administrative theories eliminate the relevance of earlier organizational principles
C.Every administrative system moves from hierarchy to markets without reversal
D.All countries adopt identical reforms after the same economic crisis
Correct Answer: A country introduces performance contracts while retaining highly centralized personnel rules
Explanation:
Mixed institutional arrangements show that reforms are adapted to political, legal, and administrative contexts rather than adopted as a universal sequence.
Incorrect! Try again.
46A welfare agency meets its aggregate service targets but systematically underserves remote and minority communities. From a New Public Administration perspective, the central criticism is that the agency has neglected:
new public administration
Hard
A.Budgetary authorization
B.Administrative neutrality
C.Organizational hierarchy
D.Social equity
Correct Answer: Social equity
Explanation:
New Public Administration evaluates administration not only by efficiency or aggregate outputs but also by whether public services fairly address unequal conditions and disadvantaged groups.
Incorrect! Try again.
47Which policy design best reflects the New Public Administration principle that administrators should be responsive to marginalized citizens?
new public administration
Hard
A.Restricting participation to formally recognized professional associations
B.Allocating additional outreach resources to communities facing documented access barriers
C.Using a uniform service model to minimize political influence
D.Rewarding offices solely according to the number of cases closed
Equity may require differentiated treatment when groups face unequal barriers. The objective is fair access and outcomes, not merely identical procedures.
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48An administrator must choose between a cheaper policy that preserves existing disparities and a costlier policy that substantially improves access for excluded groups. Which justification is most consistent with New Public Administration?
new public administration
Hard
A.Choose the costlier policy because equity is an independent administrative value
B.Choose either policy because administrators should avoid all value judgments
C.Choose the cheaper policy unless a legislature specifies every affected group
D.Choose the cheaper policy because efficiency always overrides distribution
Correct Answer: Choose the costlier policy because equity is an independent administrative value
Explanation:
New Public Administration rejects the idea that efficiency is the sole criterion. Equity and responsiveness can justify additional expenditure when distributional consequences are significant.
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49Which tension is most characteristic of New Public Administration rather than a simple efficiency-centered model?
new public administration
Hard
A.Whether agencies should maintain records in paper or digital form
B.Whether administrative responsiveness may require discretion that complicates uniform treatment
C.Whether a rule should be written in formal or informal language
D.Whether organizational charts should display departments vertically or horizontally
Correct Answer: Whether administrative responsiveness may require discretion that complicates uniform treatment
Explanation:
New Public Administration values responsiveness and equity, but these can require context-sensitive discretion that appears to conflict with uniform administrative treatment.
Incorrect! Try again.
50A department creates participatory forums, but officials use them only to ratify decisions already made and exclude low-income residents through inconvenient meeting times. What is the strongest New Public Administration assessment?
new public administration
Hard
A.The department has implemented market competition through public deliberation
B.The department has achieved participation because consultation occurred
C.The department has improved neutrality by preventing citizen influence
D.The department has created symbolic participation without meaningful responsiveness or equity
Correct Answer: The department has created symbolic participation without meaningful responsiveness or equity
Explanation:
Participation is substantive only when affected citizens can influence decisions and access the process fairly. Procedural consultation alone does not satisfy responsiveness.
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51A ministry pays schools according to graduation rates, after which schools exclude difficult students and inflate completion records. Which New Public Management problem is most directly illustrated?
new public management
Hard
A.The constitutional separation of powers
B.Administrative federalism
C.The elimination of managerial discretion
D.Goal displacement and gaming caused by poorly designed performance measures
Correct Answer: Goal displacement and gaming caused by poorly designed performance measures
Explanation:
When measured indicators become targets, organizations may manipulate behavior to improve reported results rather than actual public value. This is a classic performance-measurement problem.
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52Which contractual arrangement best addresses the risk that a private contractor will reduce service quality in dimensions that are difficult to observe?
new public management
Hard
A.Let the contractor define all performance criteria after delivery
B.Use only a fixed payment and prohibit all monitoring
D.Award the contract solely to the lowest initial bidder
Correct Answer: Use outcome measures, independent audits, complaint mechanisms, and carefully specified quality standards
Explanation:
Unobservable quality creates information asymmetry. Multiple monitoring and accountability mechanisms reduce, though do not eliminate, the contractor's incentive to cut hidden quality.
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53A public hospital is granted managerial autonomy and told to compete for patients, but its emergency-care obligations remain universal and unprofitable. Which criticism of New Public Management is most relevant?
new public management
Hard
A.Managerial autonomy necessarily prevents all innovation in public organizations
B.Market mechanisms always produce higher costs than traditional hierarchy
C.Universal obligations are incompatible with any form of performance measurement
D.Competition may undermine universal obligations when revenue incentives conflict with equity and public-service duties
Correct Answer: Competition may undermine universal obligations when revenue incentives conflict with equity and public-service duties
Explanation:
NPM tools can improve efficiency, but market incentives may encourage providers to favor profitable users or services unless public obligations are protected.
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54Which combination most clearly distinguishes New Public Management from traditional bureaucratic administration?
new public management
Hard
A.Informal norms, kinship networks, personal loyalty, and administrative secrecy
B.Managerial autonomy, competition, explicit performance standards, and output-oriented accountability
C.Input controls, tenure, uniform procedures, and centralized authorization
D.Citizen assemblies, distributive justice, deliberation, and constitutional review
NPM seeks to make public organizations more performance-oriented through managerial discretion, competition or quasi-markets, measurable outputs, and results-based accountability.
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55An agency improves its measured processing speed by rejecting complex applications more frequently. Which redesign would most directly reduce this adverse incentive?
new public management
Hard
A.Allow each office to select whichever indicator produces the best ranking
B.Increase the weight of speed while removing all qualitative review
C.Replace all performance information with seniority-based promotion
D.Use a balanced indicator set that includes accuracy, accessibility, complexity, and long-term outcomes
Correct Answer: Use a balanced indicator set that includes accuracy, accessibility, complexity, and long-term outcomes
Explanation:
A multidimensional performance framework reduces the incentive to sacrifice quality, fairness, and difficult cases for a single easily manipulated speed measure.
Incorrect! Try again.
56In the public choice approach, why might a program persist even when its aggregate social benefits are lower than its costs?
public choice approach
Hard
A.Public officials are assumed to maximize social welfare perfectly
B.Bureaucrats cannot influence policy after legislation is enacted
C.Competition automatically eliminates programs with negative net benefits
D.Concentrated beneficiaries may organize effectively while diffuse taxpayers face weak incentives to oppose it
Correct Answer: Concentrated beneficiaries may organize effectively while diffuse taxpayers face weak incentives to oppose it
Explanation:
Public choice emphasizes collective-action asymmetries: organized groups can secure benefits, while dispersed costs may generate little political mobilization.
Incorrect! Try again.
57A regulatory agency receives detailed technical information from the industry it regulates, while consumers lack comparable expertise and organization. Which public choice concern is most applicable?
public choice approach
Hard
A.The irrelevance of organized interests to administrative outcomes
B.The automatic correction of government failure through hierarchy
C.The complete absence of bureaucratic discretion
D.Regulatory capture supported by information asymmetry
Correct Answer: Regulatory capture supported by information asymmetry
Explanation:
When a regulated industry is better organized and better informed than the public, it may shape rules and enforcement in ways that advance private interests.
Incorrect! Try again.
58Which institutional reform is most consistent with the public choice response to bureaucratic budget maximization?
public choice approach
Hard
A.Grant agencies indefinite budgets with no comparative evaluation
B.Introduce competition, sunset reviews, transparent cost information, and limits on discretionary expansion
C.Increase organizational secrecy to protect administrative expertise
D.Centralize every operational decision in the agency's senior office
Correct Answer: Introduce competition, sunset reviews, transparent cost information, and limits on discretionary expansion
Explanation:
Public choice predicts that agencies may seek larger budgets or jurisdictions. External comparison, review, transparency, and institutional constraints can limit unchecked expansion.
Incorrect! Try again.
59A city allows residents to choose among nearby providers of publicly funded services, but all providers must meet common standards. Which public choice logic is being applied?
public choice approach
Hard
A.Replace collective decisions entirely with administrative hierarchy
B.Treat public services as rights that cannot involve institutional comparison
C.Use exit and competition to discipline providers while preserving public financing
D.Eliminate consumer choice to prevent all forms of opportunism
Correct Answer: Use exit and competition to discipline providers while preserving public financing
Explanation:
Choice among providers creates competitive pressure and an exit option, while common standards retain public safeguards and prevent purely unregulated provision.
Incorrect! Try again.
60Which scenario most clearly illustrates a collective-action problem rather than a simple lack of public information?
public choice approach
Hard
A.Citizens oppose a policy after receiving incorrect statistical data
B.A small group obtains a costly subsidy while each taxpayer bears a negligible individual cost of opposition
C.An agency publishes complete budget data in an inaccessible format
D.A minister changes policy after receiving conflicting expert forecasts
Correct Answer: A small group obtains a costly subsidy while each taxpayer bears a negligible individual cost of opposition
Explanation:
The dispersed taxpayers have little individual incentive to organize against the subsidy, while the concentrated beneficiaries have strong incentives to mobilize.
Incorrect! Try again.
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