According to public choice theory,government failure occurs because
A)government officials do not listen to the pleading of special interest groups.
B)lobbyists write legislation.
C)government officials act in their own self-interest.
D)voters are fully informed about the effects of policies.
E)government cannot calculate the levels of externalities because there is no market for them.

Question

Quizplus · Accepted Answer

Public choice theory suggests that government officials will act in their own self-interest rather than in the interest of their constituents. This can lead to government failure, as policies may not be designed to maximize social welfare or address externalities. Choices A, B, D, and E are not necessarily causes of government failure according to public choice theory.

According to Public Choice Theory,government Failure Occurs Because