Public Choice Economists Focus On

question 55

Multiple Choice

Public choice economists focus on:

• A) how the invisible hand achieves harmony and equilibrium through the market.
• B) the tensions among social classes.
• C) economic incentives faced by politicians.
• D) cultural and historical aspects of the market.

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Definitions:

Government Spending

The total of all public sector expenditures, including public goods and services provided, and investments made by government agencies.

Federal Government

The national government of a federal country, where powers are divided among a central authority and constituent political units.

Private Investment

Expenditures by private sector entities on means of production, such as infrastructure or equipment, intended to yield future returns.

Prosperity

A state of economic growth and stability, characterized by high levels of employment, income, and consumer confidence.