The public choice model
A)examines the degree of market power that the public exerts in a market economy.
B)examines the public's role in appointing politicians and ensuring that elected officials act in ways to reflect the public's preferences.
C)applies economic analysis to government decision making.
D)applies economic analysis to the collective decision making of consumers.

Question

Quizplus · Accepted Answer

The public choice model applies economic analysis to government decision making. It examines how individuals or groups can influence government decisions in ways that benefit their own interests, rather than the interests of the wider public. This approach assumes that politicians and bureaucrats are self-interested actors who respond to incentives in a similar way to the private sector. The aim of public choice theory is to provide insights into how government decisions are made, and to identify potential solutions to problems such as rent-seeking, regulatory capture, and political corruption.

The Public Choice Model