The Theory of Public Choice

question 73

Multiple Choice

The theory of public choice

• A) is the theory of how government decides on what military hardware to purchase.
• B) considers government decision-making efficient.
• C) is the study of collective decision making.
• D) is the study of how negative externalities can be reduced.

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Definitions:

Money

Any item that is generally acceptable to sellers in exchange for goods and services.

Present Value

A calculation of today's value of money to be received in the future or ongoing cash flows, based on a given rate of return.

Rent Payment

Monetary compensation paid by a lessee to a lessor for the use of a particular property, piece of equipment, or facility.