List and explain the four key assumptions in the theory of public choice
What will be an ideal response?
The key assumptions in the theory of public choice are (1 ) individuals are motivated by self-interest, which implies individuals will act within the political process to maximize their individual (not collective) well-being, (2 ) opportunity costs exist, which means every government action has an opportunity cost, (3 ) competition is present, which implies elected representatives will always be in competition for available government funds and (4 ) individuals in government face an incentive structure, which means if a bureaucrat provides poor representation, the organization's owners—the taxpayers—have no immediate mechanism for expressing their dissatisfaction.
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Because each customer pays according to her willingness to pay, a consumer maximizes her consumer surplus under first-degree price discrimination
Indicate whether the statement is true or false
Three forces played a significant role in preparing Indian policy makers for economic reform. Describe them
What will be an ideal response?