Answer to Question 1
Public choice theory is an economic theory that the public officials who set economic policies and regulate the players act in their own self-interest, just as firms do.
Answer to Question 2
Free trade is controversial because it affects various groups in the economy in different ways. While both trading partners on the whole will gain from free trade, some individuals may lose. For example, opening up the economy to trade may allow consumers to buy goods at lower prices but could affect the wages and jobs of domestic workers.
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