According to public choice theorists,people behave differently in the market sector than in the public sector because
A) the more people there are in the market sector the less influence they are able to exert,whereas the more people there are in the public sector the more influence they are able to exert.
B) the fewer people there are in the market sector the less influence they are able to exert,whereas the fewer people there are in the public sector the more influence they are able to exert.
C) self-interest is the motivating force in the market sector,whereas altruism is the motivating force in the public sector.
D) altruism is the motivating force in the market sector,whereas self-interest is the motivating force in the public sector.
E) institutional arrangements are different in the two sectors.

Question

Quizplus · Accepted Answer

Public choice theory argues that institutional arrangements are different in the market and public sectors, leading individuals to behave differently. In the market sector, individuals are driven by self-interest and motivated to maximize their own profits. In the public sector, individuals are motivated by a different set of incentives, such as political power and social approval. The public sector is subject to different institutional arrangements, such as democracy and bureaucracy, which can shape individuals' behavior in distinct ways compared to the market sector.

According to Public Choice Theorists,people Behave Differently in the Market