Public Choice

Who is one of the founders of the public choice school?

• Ludwig von Mises

• Gordon Tullock

• Joseph Schumpeter

• Paul Samuelson

Who is the other co-founder of the public choice school that won the Nobel Prize

The public choice school maintains that

• there are no market failures

• that the public management of resources may be more inefficient than the market

• Market failures do justify government intervention

• the correct method in economics is praxeology

Rational ignorance means that

• it is rational for voters to be ignorant

• voters are not always rational

• ignorance is not rational

• voters tend to be ignorant of their rationality

Interest groups

• serve the common good

• secure privileges on cost of the rest of society

• are necessary to defend the interest of the weak

• harm the silent minority

Representation in democracy is

• non-binding

• binding

• guaranteed through irrelevant votes

• sometimes binding, sometimes not

Democratic governments are more short-sighted than (mark wrong answer)

• kings

• entrepreneurs

• family heads

• none

Why is the long-term relevant for entrepreneurs? Because they own and normally want to preserve their

bureaucrates make their decisions based on

• expected profits and losses

• regulations

• the capital invested

• the common good

bureaucrates want to

• shut down their agency

• increase their budget

• solve the problem their agency was created for

• decrease costs for society