Which economic theory did James M. Buchanan extend?
Public choice theory
Supply-and-demand theory
Theory of comparative advantage
Monetarist theory
Answer
Public choice theory was extended by James M. Buchanan to apply to a wider range of economic issues. He argued that political decisions are made by rational individuals who are motivated by self-interest, just as economic decisions are. This means that government policies are not necessarily made in the best interests of the public, but rather in the interests of the individuals who make them.
The Mind of Economics: Unleashing the Legacy of James M. Buchanan
More Questions
Did Buchanan consider wealth-maximization the only motivational factor for politicians?
Where was James M. Buchanan originally from?
Who gave the Nobel Memorial Prize in Economic Sciences to James M. Buchanan?
Was Buchanan's work initially well-accepted?
James M. Buchanan also served as an advisor to which institute?
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