Economics Supply And Demand Questions
Public choice theory is an economic theory that applies the principles of supply and demand to the decision-making process of individuals and groups in the public sector. It suggests that individuals, including politicians, bureaucrats, and voters, act in their own self-interest when making decisions related to public policy. This theory assumes that individuals are rational and seek to maximize their own utility or well-being. It also recognizes that there are constraints and trade-offs involved in decision-making, such as limited resources and competing interests. Public choice theory helps to explain how and why public policies are formed and how they may be influenced by various factors, including special interest groups, lobbying, and political competition.