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.
E
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Market power guarantees profit
A) True, which is why firm's locate as far away from each other as possible. B) False, market power guarantees price greater than marginal cost. C) True, market power guarantees price greater than average cost. D) False, market power guarantees price equal to average cost.
The market system provides a way
A. to allow specialization and exchange to work in tandem. B. to improve the well-being of mankind. C. to harness self-interest. D. to allocate goods and services. E. All of the responses are correct.