Author Question: What are the public choice theory arguments against government involvement in the ... (Read 23 times)

jessicacav · **on:** Jun 30, 2018

What are the public choice theory arguments against government involvement in the economy?

Question 2

In international trade, an infant industry is one:
a. that protects firms that produce products for infants.
b. with a large number of very small firms.
c. in which the firms are experiencing very small profits.
d. in the early stages of its development.

upturnedfurball · **Reply #1 on:** Jun 30, 2018

Answer to Question 1

Public choice theory emphasizes the possibility of government failure (government attempting to do good but instead manages to make matters worse). Government failure may stem from majority rule that does not rely on benefit-cost analysis, special-interest groups capturing most of the benefits, rational voter ignorance, inefficient bureaucratic behavior, and shortsighted political behavior.

Answer to Question 2

d