Chapter 5, Problem EFCT

To determine

Why do tax payers’ representatives who fund NSLP program experience more difficulties in designing effective incentive structures for officials who manage that program than do a company’s shareholders who seek to change the incentives confronting firms’ managers?

Concept Introduction:

The National School Lunch Program (NSLP) is one of the biggest food and nourishment help programs in the United States, bolstering many kids each day. Amid the 2006 school year, the program served 28 million snacks every day, overall, at a cost of $8 billion for the year. School supper suppliers confront the undertaking of serving nutritious and engaging school snacks, including free and decreased cost snacks for low-salary understudies, and doing as such under spending requirements.

As of late, questions have been raised about the program's capacity to meet this objective, particularly as the principle nourishment issue has moved from undernutrition to overweight and heftiness. Open worry for the program has concentrated on whether it is adding to the developing issue of youth corpulence and on the nature of nourishments accessible to school-children. Accordingly, numerous states and territories have forced stringent nutritious necessities on both NSLP suppers and "aggressive sustenance’s" (different nourishments and drinks accessible in the school).

School feast suppliers have grappled with meeting these limitations and other program necessities while taking care of increasing expenses and empowering understudy cooperation. In the interim, issues at the Federal level incorporate how to help school supper suppliers enhance the dietary nature of sustenance’s filled in and also how to adjust program access and uprightness, especially with respect to guaranteeing that ineligible understudies don't get free or decreased cost lunches.