The Public Choice Model Raises Questions About the Government's Ability

question 167

Multiple Choice

The public choice model raises questions about the government's ability to regulate economic activity efficiently.Which of the following statements represents the views of most economists with regard to the role of government?

• A)Congress should abolish the Food and Drug Administration, the Environmental Protection Agency, and other agencies and commissions because the costs of their actions exceed the benefits they provide to the public.
• B)Government should do more to regulate markets. The public choice model has shown that rent seeking and rational ignorance affect more markets than are currently subject to regulation.
• C)U.S. citizens can afford more government regulation if the cost of this regulation is borne mostly by taxpayers with the highest incomes.
• D)Agencies such as the Food and Drug Administration and the Environmental Protection Agency can serve a useful purpose, but we need to take the costs of regulation into account along with the benefits.

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Definitions:

Leadership Performance

Refers to how effectively a leader influences their group towards achieving goals, based on qualities like decision-making, communication, and ability to inspire or motivate.

Core Values

Fundamental beliefs or guiding principles that dictate behavior and can help people understand the difference between right and wrong.

Permissiveness

Characterized by or allowing considerable freedom of behavior, a lenient approach to discipline or rules.

Inconsistency

The state of being incoherent or not staying the same throughout, often leading to unpredictability or confusion.