An Important Assumption in the Theory of Public Choice Is

question 277

Multiple Choice

An important assumption in the theory of public choice is that

• A) individuals will act within the political process to maximize their individual well-being.
• B) individuals will act within the political process to maximize their collective well-being.
• C) individuals will only operate outside the political process when their well-being is involved.
• D) scarcity does not exist in the government sector.

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Definitions:

Cash Outflows

Payments or expenditures made by a business, resulting in a decrease in cash holdings.

Financing Activities

Transactions that involve raising capital, repaying investors, and altering the capital structure of the organization among other financing-related decisions.

Issuing Debt

The act of a corporation or governmental entity raising money by selling bonds or notes to investors.

Cash Dividends

Payments made by a company to its shareholders from its profit or retained earnings.