The assumption that individuals in the public sector make choices that maximize their own utility is characteristic of the _______ approach to studying public sector choice.
A) federal budget studies
B) government spending theory
C) public interest theory
D) public choice theory

Question

Quizplus · Accepted Answer

The assumption that individuals in the public sector make choices that maximize their own utility is a key principle of public choice theory. This theory posits that individuals - whether in the public or private sector - act in their own self-interest and pursue their own goals. This differs from the assumption of the public interest theory, which suggests that public sector workers act in the interest of the public as a whole. Therefore, the best choice is option D - public choice theory.

The Assumption That Individuals in the Public Sector Make Choices