According to Public Choice Theorists,people in the Market Sector and People

question 5

Multiple Choice

According to public choice theorists,people in the market sector and people in the public sector behave differently because

• A) people in the two sectors have different motives.
• B) the two sectors have different institutional arrangements.
• C) government employees do not act in their own self-interest.
• D) there are economies of scale in the market sector.

---

Definitions:

Drive-Reduction Theory

A psychological concept suggesting that motivation arises from biological needs that push organisms to seek homeostasis through reducing drives stemming from those needs.

Tension

The physical or emotional strain caused by conflicting or demanding circumstances.

Stability

The condition of being resistant to change or variation, often used in psychological contexts to refer to emotional or mental consistency.

Primary Drives

Basic, instinctual drives that motivate behaviors necessary for survival, such as hunger, thirst, and avoidance of pain.