The Theory That Individuals in Government Seek to Maximize _______

question 57

Multiple Choice

The theory that individuals in government seek to maximize _______ is called ________ theory.

• A) their own utility; public finance
• B) the public welfare; public choice
• C) their own utility; public choice
• D) the public welfare; private interest

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Definitions:

Budget Constraint

A budget constraint represents the combination of goods and services that a consumer can purchase with their limited income.

Indifference Curves

In consumer theory, a graph showing combinations of goods or services among which a consumer is indifferent, reflecting preferences.

Optimum

The condition or outcome that is most favorable or efficient under the given circumstances.

Budget Constraint

The limitation on the consumption bundles that a consumer can afford based on their income and the prices of goods and services.