Which of the Following Represents the Basic Principle of Public

question 5

Multiple Choice

Which of the following represents the basic principle of public choice theory?

• A) Politicians act consistently in the public's interest.
• B) Politicians follow their own self-interest and seek to maximize their reelection chances, rather than promote the best interests of society.
• C) Politicians act in the public interest once they are elected, but follow their own self-interest and seek to maximize their reelection chances during a political campaign.
• D) Politicians have an incentive to be cost-conscious and creative because they face the same type of profit motive as producers.

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Definitions:

Floating-Rate Bond

A type of bond with a variable interest rate that adjusts periodically according to a specified benchmark rate.

Junk Bond

A high-risk, high-yield bond rated below investment grade, offering potential for high returns and high risk of default.