The Public Choice Model Can Be Used to Examine Voting

question 83

Multiple Choice

The public choice model can be used to examine voting models that contrast the manner in which collective decisions are made by governments (state, local, and federal) and the manner in which individual choices are made in markets.Which of the following descriptions is consistent with the difference between collective decision-making and decision-making in markets?

• A)Everyone who votes must agree with a decision made collectively through government, but in markets individuals can make their own choices.
• B)Individuals are less likely to see their preferences represented in the outcomes of government policies than in the outcomes of markets.
• C)The cost of a government policy is determined by a majority vote of members of the public; decisions made in markets are based on individual willingness to pay.
• D)Choices made through government policies are more important than decisions individuals make through markets.

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Definitions:

Standard Deduction

The standard deduction is a fixed dollar amount subtracted from an individual's income before income tax is calculated, reducing taxable income.

Joint Return

A tax return filed collectively by married couples, combining their incomes, exemptions, and deductions.

Taxable Income

The portion of income that is subject to taxation according to the laws and regulations of the taxing authority.

Standard Deduction

A fixed dollar amount that reduces the income on which you are taxed, varying by filing status and adjusted each year for inflation.