Do you think economic principles apply in both private and public organizations?
This depends on what, exactly, you mean by “economic principles.” Some economic principles apply equally in both types of organizations. Others apply to some degree in both, but apply more strongly to private organizations.
One set of economic principles has to do with how people make choices. Economists believe, for example, that people act rationally and that they respond to economic incentives. These principles apply equally to public and private organizations. This is why, for example, many American conservatives want to tie teacher pay to student performance. They believe that teachers will respond to this economic incentive by doing a better job of educating their students. These are principles that are based in human nature and govern individual human...
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