$2$

Multiple Choice

$5$ points

The public choice model can be used to examine voting models that contrast the manner in which collective decisions are made by governments $($state$,$ local, and federal$)$ and the manner in which individual choices are made in markets. Which of the following descriptions is consistent with the difference between collective decision$-$making and decision$-$making in markets?

Only large corporations are represented in the free$-$market.

Everyone who votes must agree with a decision made collectively through government, but in markets individuals can make their own choices.

Individuals are less likely to see their preferences represented in the outcomes of government policies than in the outcomes of markets.

Only special$-$interest groups are represented in government policy.

The cost of a government policy is determined by a majority vote of members of the public; decisions made in markets are based on individual willingness to pay.

Choices made through government policies are more important than decisions individuals make through markets.