What Is the Assumption Underlying Public-Choice Theory

question 115

Multiple Choice

What is the assumption underlying public-choice theory?

• A) Elected officials believe in cooperating with one another and they seek to avoid competition among themselves.
• B) The costs and benefits of being efficient are the same whether one is in the private sector or in the public sector.
• C) Individuals act within the political process to improve their own individual well-being.
• D) Resources in the public sector are not scarce.

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Definitions:

Exchange Process

The act of giving one thing and receiving another in return, often used in the context of business transactions or trade.

Consumer Behaviour

Refers to the study of how individual customers, groups or organizations select, buy, use, and dispose ideas, goods, and services to satisfy their needs and wants.

Buyer Behaviour

Refers to the actions and decision-making processes of consumers when purchasing goods and services.

Medical Insurance

A type of insurance coverage that pays for an insured individual's medical and surgical expenses.