The Theory of Public Choice

question 68

Multiple Choice

The theory of public choice

• A)Examines why the public rejects so many bond referendums.
• B)Emphasizes the self-interest of decision makers and voters.
• C)Examines how a policy of laissez faire works to allocate resources.
• D)Explains the selfless pursuit of public goals by public servants.

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Definitions:

Rights To Net Assets

The entitlements that equity holders have to a company's assets after all liabilities have been settled.

Specific Assets And Liabilities

Items on a company's balance sheet that are clearly identified and quantified, including cash, inventory, debt, and equity.

Incorporated Business

A business entity that is legally recognized as separate from its owners, with its own rights and liabilities.

Proportionately Adjusted

Refers to the method of adjusting figures or data in financial statements to reflect the ownership interest accurately.