The public choice theory of regulation rests on the premise that:
A) individuals are evil and will only do the wrong thing.
B) individuals will pursue their own self-interest in private, but not public matters.
C) people employed by government will pursue their own self-interest.
D) public servants can be trusted to serve the public interest.

Question

Quizplus · Accepted Answer

The public choice theory of regulation assumes that individuals employed by government will pursue their own self-interest, rather than the public interest. This is based on the idea that individuals are rational and seek to maximize their own utility, even in a public role. Therefore, regulation may be influenced by factors such as political pressure and rent-seeking behavior, rather than purely being driven by the desire to promote the public good.

The Public Choice Theory of Regulation Rests on the Premise