Which perspective is best suited to examine government's fiscal policy regarding taxation and expenditures?

Question

Quizplus · Accepted Answer

Rational choice theory is the best suited to examine government's fiscal policy regarding taxation and expenditures as it assumes that individuals and institutions act rationally to achieve their goals, and fiscal policy is based on a set of rational calculations aimed at maximizing social welfare. It focuses on the incentives and choices policymakers face when making decisions about taxation and expenditures, taking into account factors such as political power, public opinion, and economic conditions. The other perspectives may touch on aspects of government's fiscal policy, but are not as focused on the rational decision-making process behind it.

Which Perspective Is Best Suited to Examine Government's Fiscal Policy