Despite Being a College Graduate, Ethan Cannot Name Any of His

question 10

Multiple Choice

Despite being a college graduate, Ethan cannot name any of his representatives in Congress and he has no idea which issues are being debated and voted on this week in Congress. According to public choice analysis, Ethan is

• A) irrational.
• B) considering only the welfare of society and not his own personal interests.
• C) not intelligent enough to understand the issues.
• D) making a rational personal choice because knowing these things gives him little personal benefit.

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Definitions:

Permits

Official documents or licenses that authorize individuals or companies to undertake certain activities, often subject to regulations.

Pollution

The introduction of contaminants into the natural environment that cause adverse change.

External Costs

Costs that are not reflected in the market price of goods or services, often burdening third parties not involved in the transaction.

External Benefits

Positive effects of a production or consumption activity on third parties not directly involved in the transaction.