The Branch of Economics That Attempts to Understand the Outcomes

question 163

Multiple Choice

The branch of economics that attempts to understand the outcomes observed in the public sector by examining the incentives faced by the individual actors involved (such as voters, politicians, and bureaucrats) is known as

• A) private choice analysis.
• B) public choice analysis.
• C) government operations analysis.
• D) incentive analysis.

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Definitions:

Predictability

The extent to which future events or behaviors can be foreseen based on current knowledge or past events.

Private Thought Processes

Private thought processes refer to the internal, mental activities individuals engage in, such as reasoning, reflecting, and planning, which are not observable by others.

Skinner

Refers to B.F. Skinner, a renowned psychologist best known for his work in behaviorism and the development of the theory of operant conditioning.

Conditioned Stimuli

A previously neutral stimulus that, after becoming associated with an unconditioned stimulus, elicits a conditioned response.