The bureaucratic decision-making process produces an optimal outcome because it increases efficiency and rationality by assigning responsibility for different tasks to different people

Which agency was supposed to prevent the financial havoc wreaked by Bernie Madoff?

a. The Treasury Department b. The Federal Deposit Insurance Corporation c. The Federal Reserve d. The Council of Economic Advisors e. The Securities and Exchange Commission

The fights over the fiscal cliff and the debt ceiling illustrated that

a. command authority was the only solution to the problem. b. deadlines can motivate both sides to reach a compromise. c. separation of powers creates real problems for government spending. d. having supermajority requirements increases transaction costs.