The Public Choice Model Raises Questions About the Government's Ability

question 167

Multiple Choice

The public choice model raises questions about the government's ability to regulate economic activity efficiently.Which of the following statements represents the views of most economists with regard to the role of government?

• A)Congress should abolish the Food and Drug Administration, the Environmental Protection Agency, and other agencies and commissions because the costs of their actions exceed the benefits they provide to the public.
• B)Government should do more to regulate markets. The public choice model has shown that rent seeking and rational ignorance affect more markets than are currently subject to regulation.
• C)U.S. citizens can afford more government regulation if the cost of this regulation is borne mostly by taxpayers with the highest incomes.
• D)Agencies such as the Food and Drug Administration and the Environmental Protection Agency can serve a useful purpose, but we need to take the costs of regulation into account along with the benefits.

---

Definitions:

Decentralized

Pertaining to the distribution of functions, power, or people away from a central location or authority.

Single Workplace

Refers to a specific location where work is done or where an employer conducts its business operations.

Negotiations

The process of discussing and coming to mutual agreements between parties with different interests, often involving compromise to settle disputes or formalize arrangements.

Side Discussions

Informal or unofficial conversations that occur alongside formal negotiations or meetings, often used to resolve issues in a less formal setting.