The Theory of Public Choice

question 184

Multiple Choice

The theory of public choice

• A) analyzes the likelihood that various public sector alternatives will be instituted.
• B) assumes that economic incentives influence the choices of voters.
• C) applies the tools of economics to the collective decision-making process.
• D) is all of the above.

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Definitions:

Token Money

Money whose face value exceeds its cost of production, typically involving coins and paper money not backed by a commodity.

Legal Tender

The coins or banknotes that must be accepted if offered in payment of a debt.

Debit Cards

Plastic cards issued by banks that allow cardholders to transfer money electronically from their bank account when making a purchase.

Grace Period

A set period of time after the due date during which payment can be made without penalty.