Public Choice Theory is an economic theory that applies the principles of economics to political decision-making. It suggests that individuals in the political sphere, such as politicians, bureaucrats, and voters, act based on their self-interest, similar to how they would behave in a market. This perspective helps explain why government decisions may not always align with the public good. The theory highlights issues like government failure and rent-seeking, where individuals or groups seek to gain benefits at the expense of others. By analyzing political behavior through an economic lens, Public Choice Theory provides insights into the inefficiencies and challenges within public policy and governance.