Final answer:
The question refers to the elite theory of government, which suggests that public policy is often made by a select group of self-interested individuals rather than reflecting the interests of all citizens, as critiqued by economist Mancur Olson.
Step-by-step explanation:
The interpretation of who makes policy, as described in the question, aligns with the elite theory of government, which posits that public policy is created predominantly by a narrow group of individuals acting out of self-interest, rather than to benefit the general citizenry.
This contrasts with the pluralist theory, which suggests that policy is shaped through the interaction and competition of various interest groups representing citizens' needs.
Mancur Olson's work, particularly The Logic of Collective Action, underscores the complexity of public policy formation and the influence that smaller, more organized groups can have on economic policy, often leading to decisions that do not serve the broader economic good.