Which of the following offers theories to explain why the government, like the private sector, may also "fail"?
A) Social economics.
B) Public choice theory.
C) Rational expectations theory.
D) Keynesian economics.

Question

Quizplus · Accepted Answer

Public choice theory is the only option listed that specifically deals with why the government may fail in its economic decision-making. It posits that government officials and politicians are just as self-interested and fallible as actors in the private sector, and therefore subject to making mistakes or pursuing their own interests over the public good. The other options either do not address this issue or offer broader explanations for economic behavior.

Which of the Following Offers Theories to Explain Why the Government