When the criterion used by elected representatives of government who make choices about the production and allocation of public goods is whether the choices promote theirown self-interest (staying elected), this is an example of a
A) free-rider problem
B) positive externality
C) public choice issue
D) government subsidy
E) market failure

Question

Quizplus · Accepted Answer

This scenario is an example of a public choice issue, where the decisions made by government officials are influenced by their own interests (e.g., getting re-elected) rather than solely by what might be best for the public or society as a whole. Public choice theory explores how these personal interests can impact political decisions and public policy.

When the Criterion Used by Elected Representatives of Government Who