Public Choice Theory Is Associated with the Idea That

question 21

Multiple Choice

Public choice theory is associated with the idea that:

• A) Public officials choose policies that optimize economic performance
• B) Public officials are self-interested actors who often impede markets
• C) The public rationally chooses policies in its own interest
• D) Too many choices for public policies

---

Definitions:

Governmental Units

Entities established by governmental authorities to perform specific functions, such as cities, counties, and special districts.

Merchandise

Goods that are bought and sold in business, often synonymous with stock or inventory.

Fraudulent Misrepresentation

A wrongful statement, action, or concealment, pertinent to the subject matter of a contract, that is knowingly made to damage the other party.

Sales Puffery

Persuasive words or exaggerated arguments made by salespeople to induce customers to buy their product. As long as such comments are reserved to opinion and do not misstate facts, they are not actionable as fraud, even if they turn out to be grossly in error. Also called puffery.