Broadly Defined, Public Choice Theory Is the Branch of Economics

question 28

Multiple Choice

Broadly defined, public choice theory is the branch of economics that studies:

• A)monetary policies pursued by the Federal Reserve.
• B)the way that governments make decisions.
• C)the consumer decision-making process.
• D)the effect of externalities on public welfare.
• E)the ways that statistics can be used to analyze economic data.

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Definitions:

Magic Number

Refers to the short-term memory capacity, traditionally considered to be 7±2 items, as postulated by psychologist George A. Miller.

Short-term Memory

The ability to keep a limited quantity of data actively accessible in one's consciousness for a brief duration.

Miller

George A. Miller was an American psychologist who made significant contributions to the cognitive psychology field, notably proposing that the human mind can hold 7 ± 2 pieces of information in short-term memory.

Maintenance Rehearsal

A cognitive process of repeatedly reviewing information to be retained in short-term memory and possibly encoded into long-term memory.