The Main Point About Public Choice Theory Is That

question 116

Multiple Choice

The main point about public choice theory is that

• A)most politicians are corrupt.
• B)most civil servants act solely in the public interest.
• C)there is adverse selection in the selection of elected officials.
• D)elected officials never compromise the public interest in order to gain votes.
• E)the choices of public officials may be governed more by their own self-interest than the public interest.

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Definitions:

Total Costs

Total costs encompass the sum of all expenses incurred by a business in the production and sale of goods or services.

Fixed Cost

Costs that do not change with the level of production or sales, such as rent or salaries.

Marginal Costs

The cost incurred by producing one additional unit of a product or service.

Total Variable Cost

The sum of all costs that vary with the level of output in the short run.