Exploring Public and Private Interest

1. Suppose that you are a head of a large government agency. The legislature wants to cut your budget and you do not want it cut. They ask for proposals on how you could cut spending by 10%. What should you do: try to find the least useful things your agency does, or propose cutting the most valuable things your agency does? Explain the rationale for each strategy.

2. Congressman Snaggle helps 500 of his constituents each year get checks from the government to which they are legally entitled but which have gotten lost in the bureaucracy. These people are very grateful to Congressman Snaggle and express this gratitude on election day. Dr. Gutnews, a respected efficiency expert, has figured out a way to eliminate the bureaucratic delays that make these 500 seek Congressman Snaggle's help each year. True or False: Congressman Snaggle will be an enthusiastic supporter of this reform measure because it will help his constituents.

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