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Development Economics
» Corruption »
Corruption with Cash Transfers
» Corruption with Cash Transfers - Practice Questions
Corruption with Cash Transfers - Practice Questions
1. Which of the following is NOT a reason that paying cash transfers are worse than “building bonfires?”
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Government officials are likely to create more barriers to efficiency
Bribes consume more real resources than bonfires
Bribes create a “culture of corruption,” leading to more corruption and rent-seeking in the long-run
2. The “Theory of Efficient Rent-seeking” states that,
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Cash bribes are socially cheaper than other methods of rent-seeking
Cash bribes are socially more expensive than other methods of rent-seeking
The cost of cash bribes are socially equivalent to other methods of rent-seeking
