What Is the Assumption Underlying Public-Choice Theory

question 115

Multiple Choice

What is the assumption underlying public-choice theory?

• A) Elected officials believe in cooperating with one another and they seek to avoid competition among themselves.
• B) The costs and benefits of being efficient are the same whether one is in the private sector or in the public sector.
• C) Individuals act within the political process to improve their own individual well-being.
• D) Resources in the public sector are not scarce.

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Definitions:

FIFO Retail Inventory Method

An accounting method for valuing inventory where the first items purchased are the first ones to be sold.

Freight-in Charges

The costs associated with transporting inventory to the buyer's location, often included in the cost of goods purchased.

Ending Inventory

Ending inventory is the total value of goods available for sale at the end of an accounting period.

Net Markups

This term refers to the difference between the cost of a product and its selling price, minus any discounts or allowances.