Government projects Flashcards
1
Q
PPP
A
Government service or private business venture that is funded or operated through partnership of public and private sector
2
Q
3 benefits of PPP
A
Prevents moral hazard and x-inefficiency
Risk transfers to private sector
Reduces opportunity cost of government capital
3
Q
disadvantages of PPP
A
Administrative inefficiency
Objective clash of profit vs quality
Hold-up problem (non-contractual investment avoided to keep bargaining power)
4
Q
CBA
A
Technique to determine whether a project should go ahead (Arden University)
5
Q
2 benefits of CBA
A
Reduces OC of decisions
Terminates emotional element of managerial decisions
6
Q
2 negatives of CBA
A
Shadow pricing costly and inaccurate
Stakeholders are decision makers and have different motives
