One problem with a cost plus incentive fee procurement contract is _____.
a. it requires clearly defined output that is not really malleable
b. it almost always leads to higher costs
c. firms have a strong incentive to invest in the most expensive technology to complete the project
d. firms have an incentive to misrepresent final costs
Question 2
The double taxation of saving creates a bias towards _____.
a. investment
b. consumption
c. luxury spending
d. the future