Home MCQs Governance and Public Policy Question #10520
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Governance and Public Policy QUESTION #10520
Question 1
Public Choice Theory is best described as an economic explanation of:
  • Electoral organization and voting behavior
  • Public opinion formation
  • Political decision-making and behavior✔️
  • None of these
Correct Answer Explanation
Public Choice Theory applies economic methods and assumptions (rational self-interest, utility maximization) to political decision-making. Associated with James Buchanan (Nobel Laureate) and Gordon Tullock, it argues that politicians, bureaucrats, and voters behave as self-interested rational actors. This leads to phenomena like rent-seeking, government failure, and budget maximization by bureaucrats.