One Result of the Public Choice Model Is That Most

question 197

Multiple Choice

One result of the public choice model is that most economists believe that

• 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:

Classical Decision Model

A theoretical model suggesting that decision-making is a rational process where the best choice is made based on a thorough analysis of alternatives and their outcomes.

Complete Information

Having all necessary and relevant data available to make informed decisions or to fully understand a situation.

Clearly Defined Problem

A problem that has been thoroughly understood and articulated, including its scope and boundaries.

Behavioural Decision Model

A framework suggesting that decisions are influenced by psychological and social factors, recognizing that humans may not always act rationally.