The rational choice model attempts to explain how very policies affect the reduction/eradication of terrorism.

To reduce the amount of terrorism, policies that increase the price of terrorism will cause the budget constraint line to pivot to the left, decreasing the amount of total terrorism. This can be achieved by using a deterrent policy against terrorists. Notice that a benevolent policy does not necessarily reduce the amount of terrorism, as a benevolent policy only serves to increase the number of composite goods in the economy by decreasing the price of those composite goods. It is therefore more effective to reduce terrorism by using a deterrent policy.

It is only possible to truly get rid of terrorism by changing the preferences of terrorists. Though using a deterrent policy will lower the amount of terrorism, the real key will be to change the preferences of the terrorists such that there is an indifference curve that includes a point with no terrorism on it.