When costs are uncertain, a government might use a _____ ...

[jparksx]

When costs are uncertain, a government might use a _____ contract, where the government pays the cost of the project plus an additional amount.
 
  a. fixed fee
  b. cost plus fixed fee
  c. cost plus percentage fee
   d. cost plus incentive fee

Question 2

Which of the following is not an incentive bureaucrats have to increase the size of their budgets?
 
  a. They can increase their income by having a higher budget.
  b. Increased budgets mean more power and prestige.
  c. Higher budgets are necessary to maximize scale efficiencies.
   d. A nice working environment is positively correlated with a higher budget.

[annierak]

Answer to Question 1

b

Answer to Question 2

c

[jparksx]

Thank you

[annierak]

Happy to help you