The theory of public choice suggests that
A) government agencies tend to be inefficient because the people running them do not understand the concept of opportunity cost.
B) government agencies tend to be inefficient because they are subject to institutional arrangements in which managers do not have an incentive to be efficient.
C) the goods provided by government, whether public or private goods, are not scarce.
D) you can lower your tax bill if you are careful not to consume too many government resources, regardless of what your neighbors do.

Question

Quizplus · Accepted Answer

The theory of public choice suggests that government agencies tend to be inefficient because they are subject to institutional arrangements in which managers do not have an incentive to be efficient. Public choice theory posits that politicians and bureaucrats are primarily self-interested and, like individuals in the private sector, tend to maximize their own utility. This can lead to decisions that prioritize political gain over efficiency and allocation of resources.

The Theory of Public Choice Suggests That