What are the basic differences between public choice theory and the economics of taxation?
Please provide the best answer for the statement.
Public choice theory offers generalizations that describe how the public sector makes decisions about the use of economic resources. Topics of study include voting behavior, special interest and “rent-seeking,” and decision-making in government bureaucracies. The economics of taxation analyzes public expenditures and tax revenues. It examines the principles of taxation and the economic effects of specific taxes.
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If the fiscal authority is focused on maintaining a balance of payments equilibrium, it is said to be pursuing
A) external balance. B) internal balance. C) payments balance. D) international peace.
In the Great Depression, the financial sector collapsed, as
A) banks engaged in ruinous competition. B) the stock market boomed, so people withdrew most of their funds from banks and invested heavily in stocks. C) the bond market boomed, so people withdrew most of their funds from banks and invested heavily in bonds. D) many banks closed.