What are the public choice theory arguments against government involvement in the economy?
Public choice theory emphasizes the possibility of government failure (government attempting to do good but instead manages to make matters worse). Government failure may stem from majority rule that does not rely on benefit-cost analysis, special-interest groups capturing most of the benefits, rational voter ignorance, inefficient bureaucratic behavior, and shortsighted political behavior.
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A price ceiling is a price
A) below which a seller cannot legally sell. B) above which a seller cannot legally sell. C) that creates a surplus of the good. D) Both answers A and C are correct.
Mercantilism is another name given to the version of capitalism that has emerged in the globalized world of the 21st century
Indicate whether the statement is true or false
Suppose the production function for T-shirts can be represented as q = L0.25K0.75. Show that the production function has constant returns to scale
What will be an ideal response?
The income-expenditure identity for an open economy is:
A. Im ? Ex = C + I. B. Y = C + I + G. C. Y = C + I + G + NX. D. Y + G = C + I ? NX.