Public Choice Analysis Indicates

question 148

Multiple Choice

Public choice analysis indicates

• A) politicians under representative democracy are led as if by an invisible hand to adopt legislation that enhances the wealth of a nation.
• B) political structures consistent with economic efficiency tend to emerge naturally from the ordinary political process.
• C) constitutional rules establishing procedures and limiting the ability of the political process to engage in redistributive activities can improve the economic efficiency of government.
• D) all of the above are correct.

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Definitions:

Cost-plus Pricing

An approach to pricing in which a sale price is established by adding a specific extra amount to the product's per-unit cost.

Target Profit Pricing

Setting a product price based on a predetermined profit objective, rather than market or competitive conditions.

Return-on-investment (ROI)

A financial metric utilized to evaluate the efficiency of an investment or compare the efficiency of several different investments.

Business-to-business Markets

Markets focused on selling products or services from one business to another rather than to individual consumers.