The approach to government that assumes that the goal of government is to maximize welfare by seeking an efficient allocation of resources is called:
A) public finance theory.
B) public choice theory.
C) public interest theory.
D) welfare theory.

Question

Quizplus · Accepted Answer

The approach described in the question aligns with the public interest theory, which assumes that government should act in the best interest of all its citizens by seeking efficient and fair allocation of resources. Public finance theory is about how government raises and spends money, while public choice theory focuses on how individuals and interest groups influence government decision-making. Welfare theory is a broader concept that encompasses different approaches to government intervention to enhance well-being, but it is not specific to the goal of efficient resource allocation.

The Approach to Government That Assumes That the Goal of Government