Broadly defined, public choice theory is the branch of economics that studies:
A)monetary policies pursued by the Federal Reserve.
B)the way that governments make decisions.
C)the consumer decision-making process.
D)the effect of externalities on public welfare.
E)the ways that statistics can be used to analyze economic data.

Question

Quizplus · Accepted Answer

Public choice theory specifically focuses on how governments make decisions, particularly in the realm of public policy. It looks at the incentives faced by government officials and how those incentives affect the decision-making process. It also considers factors such as voter behavior, interest group influence, and the impact of bureaucratic structures on policy outcomes.

Broadly Defined, Public Choice Theory Is the Branch of Economics