What are the likely consequences of providing monetary incentives to politicians for good performance?
What will be an ideal response?
A pay-for-performance policy might give politicians greater incentives to please voters. Although it may incentivize politicians and discourage corruption, the possibility of a large bonus may also cause politicians to create the appearance of good performance, even when they are performing poorly. Also, pay-for-performance for politicians might attract those who are interested in making a quick buck rather than public-spirited politicians.
A-head: CHOICE AND CONSEQUENCE: SHOULD WE PAY POLITICIANS FOR
PERFORMANCE?
Concept: Pay-for-performance policies for politicians
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When is price fixing among competitors not a violation of the antitrust laws?
A) Price fixing among competitors is always a violation of the antitrust law. B) when a cartel can maximize profit without behaving like a monopoly C) when price fixing leads to a more efficient outcome D) when price fixing does not result in predatory pricing
If the Federal Reserve wishes to increase the money supply by $30,000 and the reserve requirement ratio is 0.4, how big a purchase of bonds will the Fed need to make?
a. $75,000 b. $12,000 c. $1,000 d. $30,000 e. $3,000