Public Choice Theory

    graph TD;
	    A[Public Choice Theory] --> B[Rational Self-Interest]
	    A --> C[Political Outcomes]
	    B --> D[Vote-buying]
	    D --> E[Policy Divergence]
	    C --> F[Inefficient Policies]

## 1. Who is considered the founder of Public Choice Theory? - [ ] John Keynes - [x] James M. Buchanan - [ ] Adam Smith - [ ] Milton Friedman > **Explanation:** James M. Buchanan is often credited as the pioneer in this field, proving that economists can make a joke too serious! ## 2. What does Public Choice Theory assume about government actors? - [x] They act in their own self-interest - [ ] They solely promote the public good - [ ] They are influenced only by altruistic motives - [ ] They are unwilling to engage in any form of lobby > **Explanation:** According to Public Choice Theory, government actors often resemble children in a candy store, focused on their own wants before considering the bigger picture! ## 3. What term refers to the effort by individuals or groups to benefit from resources they did not create? - [ ] Collective Action - [x] Rent-Seeking - [ ] Political Alliance - [ ] Economic Beneficiation > **Explanation:** Rent-Seeking is akin to trying to get something for nothing—like asking your family for money while planning for a new car! ## 4. Why can collective action result in inefficiency? - [ ] Everyone agrees on an objective - [x] Conflicting interests prevent collaboration - [ ] There are abundant resources for all - [ ] Political leaders always act for the good of the group > **Explanation:** It’s like a game of telephone—each player mishears the message, and by the end, the result is completely different from what was intended! ## 5. What does the term "political entrepreneur" usually refer to? - [ ] Someone who opens a new political party - [x] Individuals who exploit political issues for gain - [ ] A party volunteer - [ ] Local election campaign coordinators > **Explanation:** Political entrepreneurs are like opportunistic pranksters in the government—they find just the right moment to get what they want! ## 6. Public Choice Theory primarily examines which of the following? - [ ] Economic markets - [ ] Personal finance - [x] Decision-making in political settings - [ ] Impact of foreign trade > **Explanation:** Like an amateur detective, Public Choice Theory searches for the motives behind decision-making in politics, which can often be just as messy as real life! ## 7. Which concept is closely related to public goods? - [ ] Market Failures - [ ] Private Goods - [ ] Supply and Demand - [x] Collective Action Problem > **Explanation:** The Collective Action Problem often leads to the underproduction of public goods—much like a group project where some members decide to do “just a little less” work! ## 8. What happens when political actors pursue their personal interests? - [ ] Better societal welfare - [ ] Alignment with public demand - [x] Potential inefficiencies in governance - [ ] Smarter legislation > **Explanation:** When politicians act in their interests, it feels less like a team sport and more like a one-man show with mixed outcomes! ## 9. How do lobbyists and rent-seekers interact in politics? - [ ] They assist in public awareness - [ ] They create unbiased policies - [x] They seek benefits for specific interests - [ ] They work toward altruistic goals > **Explanation:** Just as some people can't resist a good buffet, lobbyists flock to policies that favor their interests—even if no one else is getting fed! ## 10. What overarching principle drives Public Choice Theory? - [x] Self-interest guides decisions - [ ] Altruism benefits society - [ ] Political efficiency is always sought - [ ] Market alone determines outcomes > **Explanation:** Just like a cat running after a laser pointer, self-interest is the key motivator, leading to unpredictable—and often humorous—political outcomes.