The Theory of Public Choice

question 68

Multiple Choice

The theory of public choice

• A)Examines why the public rejects so many bond referendums.
• B)Emphasizes the self-interest of decision makers and voters.
• C)Examines how a policy of laissez faire works to allocate resources.
• D)Explains the selfless pursuit of public goals by public servants.

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Definitions:

Consolidation

A combination of two or more businesses in which all of the old legal entities dissolve and a new one with a new name is formed to continue into the future.

Vertical Merger

A vertical merger occurs between two companies that operate at different levels within an industry's supply chain, typically aimed at increasing efficiencies or reducing costs.

Horizontal Merger

A business consolidation that occurs between companies operating in the same industry or production stage.

Conglomerate Merger

A merger between companies that operate in completely different industries, creating a conglomerate of businesses under one corporate group with diversified interests.