What is the assumption underlying public-choice theory?
A) Elected officials believe in cooperating with one another and they seek to avoid competition among themselves.
B) The costs and benefits of being efficient are the same whether one is in the private sector or in the public sector.
C) Individuals act within the political process to improve their own individual well-being.
D) Resources in the public sector are not scarce.

Question

Quizplus · Accepted Answer

Public-choice theory assumes that individuals act rationally to improve their own well-being within the political process. This means that politicians and bureaucrats are motivated by factors such as self-interest, power, and reelection, rather than simply seeking to serve the public interest. Therefore, public policies and decisions are often shaped by competing interests and the pursuit of personal gain.

What Is the Assumption Underlying Public-Choice Theory