The theory that individuals in government seek to maximize _______ is called ________ theory.
A) their own utility; public finance
B) the public welfare; public choice
C) their own utility; public choice
D) the public welfare; private interest

Question

Quizplus · Accepted Answer

The theory that individuals in government seek to maximize their own utility is known as public choice theory. This theory suggests that government officials act in their own self-interest rather than in the interest of the public, and that this behavior can affect the policies and decisions they make while in power. Option A is incorrect as public finance is a subfield of economics that deals with government budgeting and finance policies. Option B is incorrect as it states that government officials work towards the public welfare rather than their own interest, which conflicts with public choice theory. Option D is incorrect as it suggests that government officials work towards their private interest rather than the public welfare, which is opposite of what public choice theory suggests.

The Theory That Individuals in Government Seek to Maximize _______