What Is One Result of the Public Choice Model That

question 70

Multiple Choice

What is one result of the public choice model that is believed by most economists?

• A)When market failure occurs, government intervention will always lead to a more efficient outcome.
• B)Government intervention will always result in a reduction in economic efficiency in regulated markets.
• C)Policymakers may have incentives to intervene in the economy in ways that do not promote economic efficiency.
• D)The voting paradox will prevent voters from selecting the best person for public office.

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Definitions:

Price Discrimination

A pricing strategy where a seller charges different prices for the same product or service to different customers, based on market conditions, customer characteristics, or the nature of the purchase.

Discounts

Reductions on the regular price of goods or services, usually offered to encourage purchases.

Volume Based

A pricing or cost method where charges are dependent on the quantity of units produced or handled.

Forward Buying

The practice of purchasing stock in larger quantities than normal in anticipation of price increases or demand spikes.