Question

Because of the difference between the discipline imposed by market competition and the discipline imposed by political decisions, which of the following is most likely

Answer 1

Because of the difference between the discipline imposed by market competition and the discipline imposed by political decisions, there is bound to be A. difficulty managing public investment so it's done in a cost-effective way.

What is a competitive market?

This is s a structure in which no single consumer or producer has the power to influence the market

The characteristics of a competitive market are:

• Homogeneity of product.
• No existence of buyers or sellers.
• Access to information.
• No charge fr yranascation cost.
• No barries to entry or exit.

Hence, because of the difference imposed by the market and political decisions, the government borrowing cannot be reduced neither will there be an increase in the tax budget nor will the government budget hide the rate of private investment.

Read more about the market competition here:

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