Public Choice Theory Indicates That Representative Government Yields Outcomes More

question 55

Multiple Choice

Public choice theory indicates that representative government yields outcomes more consistent with economic efficiency when a close relationship exists between the benefits received and the costs borne by each voter. Which of the following methods of financing a government program will most likely result in a close relationship between voter benefits and costs?

• A) progressive income tax
• B) retail sales tax
• C) property tax
• D) user charges

---

Definitions:

Alternatives

Other options or choices available in a situation from which a selection can be made.

Investments

The allocation of resources, usually financial, into assets or endeavors expected to yield returns or profits over time.

Distress-Maintaining

Cycles or patterns of behavior and thought that contribute to preserving or increasing psychological distress.

Relationship-Enhancing

Any behavior or action that strengthens the bond between individuals in a relationship.