Economic Theory Indicates That the Behavior of

question 149

Multiple Choice

Economic theory indicates that the behavior of

• A) government employees differs from the behavior of employees in the private sector because government employees generally disregard their own personal self-interest when making decisions.
• B) elected public officials differs from the behavior of all other individuals in society because they are not influenced by private interests.
• C) individuals when they make decisions about who to vote for is very different from the behavior of these same individuals when they make other types of choices.
• D) voters, government employees, and public officials is best understood by applying the same basic principle we use to predict the behavior of people in the private sector--that incentives matter.

---

Definitions:

Health-Care Coverage

A contract by which an insurance company agrees to cover part or all of a person's medical expenses in exchange for a premium.

Fair Labor Standards Act

U.S. legislation that creates the right to a minimum wage, and "time-and-a-half" overtime pay when people work over forty hours a week. It also prohibits most employment of minors in "oppressive child labor".

Hazardous Occupation

A job or profession that poses significant risks to the safety and health of the workers.

Health-Care Coverage

A type of insurance that pays for medical and surgical expenses incurred by the insured, helping to cover health care costs.