Explanation

• Game theory is the study of mathematical models of strategic interactions.
• Players act rationally to maximize their payoff
•  Founders
• John von Neumann & Oskar Morgenstern — established game theory (1944)
• John Nash — Nash equilibrium (1950)

Explanation

• A choice made between two or more alternatives is called a Decision
• It involves evaluating choices to arrive at a conclusion or course of action.

Additional information

• Assumption: Something accepted as true without proof.
• Reporting: The act of presenting information or data.

Explanation

• The Behavioral Approach in Public Administration developed mainly as a reaction against the Classical Approach.
• Ecological Approach — focuses on the environment's influence on administration, not a reaction target.
• Systems Approach — actually built upon and incorporated behavioral ideas.
• Contingency Approach — is a later development that emerged after the Behavioral Approach.

Explanation

• Crossover Rate (Fisher Separation Point)
• The discount rate at which the NPVs of two projects are equal.
• Calculation
• Derived from the IRR of the incremental cash flows between the two projects.
• Purpose
• Helps select between mutually exclusive projects when their NPV rankings conflict across different discount rates.

Explanation

• The expected rate of return on a bond if it is held until maturity is called the yield to maturity (YTM).
• It represents the internal rate of return for
• The investment,
• Combining all coupon payments,
• The current market price,
• The final face value payout upon maturity.

Explanation

• New Public Management is mainly concerned with the incorporation of private management principles into the public sector and government administration
• To improve efficiency, performance, and accountability.
• Core Goals
• Efficiency: Run government like a private business.
• Competition: Use market forces inside public services.
• Results: Focus on outputs and outcomes instead of strict rules.

Explanation

• When a politician tacitly approves a policy, it generally means they continue the previous policy by giving silent or unexpressed consent without officially announcing it.

Meaning of Tacit Approval

• Silent agreement: They do not speak up or object to the rule.
• Going along: They let the current system stay in place without change.
• Implied support: Their lack of action shows they accept what is already happening.

Explanation

• POSDCORB explains the important functions of administrators.
• Developed by Luther Gulick and Lyndall Urwick in 1937
• The acronym outlines seven core duties of management
• Planning
• Organizing
• Staffing
• Directing
• Coordinating
• Reporting
• Budgeting

Explanation

• POSDCORB is a classic acronym from Luther Gulick and Lyndall Urwick's 1937 work, Papers on the Science of Administration

POSDCORB Stands For

• Planning
• Organizing
• Staffing
• Directing
• Coordinating
• Reporting
• Budgeting

Explanation

• 28th President of the United States — Woodrow Wilson
• Widely known as the father of public administration
• 1887 essay: "The Study of Administration"
• Argued administration should be studied scientifically
• Advocated separating administration from politics