Accounting costs A) are historical costs. B) are replacements ...

[geoffrey]

Accounting costs
 
  A) are historical costs.
  B) are replacements costs.
  C) usually include implicit costs.
  D) usually include normal profits.

Question 2

Define incrementalism and give two reasons why incrementalism might be efficient.
 
  What will be an ideal response?

[scikid]

Answer to Question 1

A

Answer to Question 2

Incrementalism is the theory that an agency's budget in one year will tend to be its last year's budget plus some additional increment. Incrementalism might be efficient given an understanding of the special interest theory of government and they fact that it is often difficult to measure the benefits of federal programs. Special interest theory suggests that politicians will maximize political support by giving all special interests an incremental increase in benefits. The fact that it is often difficult to measure the benefits of special programs suggests that a legislature may be able to do no better than giving each agency an incremental increase each year.