What are the costs and benefits of privatizing government functions through outside contracts?
What will be an ideal response?
Benefits include the potential that contractors may be faster, more flexible, and less expensive. They may be able to fulfill specific services or needs that government agencies cannot. However, a major cost is that of accountability: Because these contractors are not responsible to Congress, they may be less accountable and engage in more fraud and waste.
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What primary fault does Rodrik find with the arguments of proponents of free trade?
a. The actual fault is in making the free trade argument. b. They vastly overstate the effectiveness of economic openness as a tool for fostering development. c. They fail to concentrate on the empirical evidence that guarantees that deep trade liberalization will deliver higher economic growth. d. They place too much emphasis on the individual circumstances and domestic qualities of individual states, which dilutes the strength of the theory.
What, according to Jervis, is the best situation for a state?
a. low CD costs, high DD costs b. high CD costs, low DD costs c. low DC costs, high CC costs d. high DC costs, low CC costs