Which of the Following Programs Would NOT Be Favoredby Economists

Multiple Choice

Which of the following programs would NOT be favoredby economists Hart, Shleifer, and Vishny (HSV) andwhy?

A) Public prisons replace private prisons because tight budget constraints reduce the incentive to increase
Quality.
B) Public prisons replace private prisons because the profit motive increases the incentive to increase
Quality.
C) Private prisons replace public prisons because the profit motive encourages cost-cutting at the expense of
Quality.
D) Private prisons replace pubic prisons because slack budget constraints increase the incentive to increase
Quality.