Beginning in the 1980s, the federal government has used a variety of methods to reduce the size and tax burden of the federal bureaucracy. One such method is privatization. Which of the following does NOT describe an intended purpose of privatization?
a. to increase the number of employees supported by the federal government
b. to replace government-provided services with services provided by the private sector
c. to keep costs for services lower than those provided by government agencies
d. to allow for less government red tape and fewer civil service restrictions
e. to allow private companies to have more flexibility to compete and adapt to changing circumstances
Question 2
While expanded federal programs are often popular for Americans, this much-larger bureaucracy suffers during a downturn in economic growth, such as was experienced in the 1970s. Why does an economic downturn create such challenges?
a. There are fewer citizens for the bureaucracy to serve.
b. Economic downturns often create federal budget deficits that make it very difficult to continue supporting a large bureaucracy.
c. State governments begin to take away the federal governments role in providing social benefits.
d. Downturns in the economy always create international tensions that require a stronger military presence, which in turn drains off available resources.
e. Since the U.S. Constitution requires a balanced budget, the federal government must eliminate agencies when income decreases.
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