Public choice theory predicts that government
A)acts to promote the redistribution of wealth and income.
B)acts to maximize the amount of campaign contributions.
C)acts to eliminate waste and promote an efficient allocation of resources.
D)makes choices that result in efficient provision of public goods.
E)makes choices that result in inefficient overprovision of public goods.

Question

Quizplus · Accepted Answer

Public choice theory suggests that government decisions often lead to inefficient outcomes due to factors like self-interest, lobbying, and the influence of special interest groups, which can result in the overprovision of public goods.

Public Choice Theory Predicts That Government