According to Public Choice Theory, the Main Reason for Some

question 202

Multiple Choice

According to public choice theory, the main reason for some politicians' ability to build support for policies that generate more costs than benefits is that

• A) the public is always ignorant about the costs and benefits of any policy.
• B) rational ignorance is higher in the situation of concentrated benefits and diffuse costs.
• C) the government always misleads the public with biased information.
• D) the political process has flaws so that the public is always misinformed.

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Definitions:

Operating Costs

Expenses associated with the day-to-day operations of a business, including costs of goods sold (COGS) and operating expenses (OPEX).

Controlling

The process of monitoring business performance by comparing actual results with expected outcomes to make necessary adjustments.

Choosing Goals

The process of identifying objectives or desired outcomes that guide decision-making and strategic planning in personal or organizational contexts.

Direct Materials Cost

The expense incurred for materials that are directly traceable to the production of goods.