Which of the following is true?
A)Inefficient bribe- taking in highly regulated economies can be regarded as a game of plain substitutes.
B)The demand for bribes is an increasing function of the sum of bribes.
C)Inefficient bribe- taking in highly regulated economies result in bribes that are efficient.
D)Bribing is immoral but it has beneficial social role.

Question

Quizplus · Accepted Answer

In highly regulated economies, there are often many regulations and bureaucratic hurdles that businesses or individuals have to navigate. The demand for bribes becomes a substitute for the time and effort it would take to navigate these hurdles. In this sense, inefficient bribe-taking can be seen as a game of plain substitutes, where the bribe is a substitute for the effort needed to comply with regulations.

B) The demand for bribes being an increasing function of the sum of bribes is not necessarily true and is not related to inefficient bribe-taking in highly regulated economies.

C) Inefficient bribe-taking does not result in bribes that are efficient. Inefficient bribe-taking means that bribes are being taken inefficiently, which can lead to an increase in the cost of doing business and a decrease in overall efficiency.

D) Whether or not bribing has a beneficial social role is a matter of debate and opinion, but it is not relevant to the topic of inefficient bribe-taking in highly regulated economies.

Which of the Following Is True