Public choice theory provides an economic analysis of which of the following subjects?

• A. Consumer preferences in private markets
• B. International trade agreements
• C. Decision-making in government and political processes
• D. Production techniques in manufacturing industries

Answer: (C)

Verified step by step guidance

1. Understand that Public Choice Theory applies economic principles to political science, focusing on how decisions are made within government and political processes.
2. Recognize that Public Choice Theory analyzes the behavior of voters, politicians, and bureaucrats as self-interested agents, similar to consumers and firms in markets.
3. Note that Public Choice Theory does not primarily focus on consumer preferences in private markets, international trade agreements, or production techniques in manufacturing industries.
4. Identify that the core subject of Public Choice Theory is the decision-making mechanisms in government, including voting, lobbying, and policy formation.
5. Conclude that the correct application of Public Choice Theory is to the study of decision-making in government and political processes.