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:

Capitalism

An economic system characterized by private or corporate ownership of capital goods, investments dictated by private decision, and prices, production, and the distribution of goods determined mainly by competition in a free market.

Marginal Cost

The cost of producing one additional unit of a good or service, which can change depending on the level of production.

Costume Party

A social gathering where participants wear costumes and often engage in themed activities, not a term typically associated with economics.

Black Panther

A member of the Black Panther Party, a revolutionary black nationalist and socialist organization active in the United States from 1966 until 1982.