If Voters Are Rationally Ignorant,the Quantity of National Defence Provided

question 51

Multiple Choice

If voters are rationally ignorant,the quantity of national defence provided by the government will be

• A)greater than the efficient quantity.
• B)less than the efficient quantity.
• C)the least costly quantity.
• D)the quantity that maximizes the budget of the Department of National Defence.
• E)both A and D are correct.

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Definitions:

Temporary Investments

Short-term investments made by companies to earn a return on idle cash, often maturing in one year or less.

Consolidated Financial Statements

Financial statements resulting from combining parent and subsidiary statements.

Common Stock

Equity securities representing ownership shares in a corporation, providing voting rights and a portion of profits through dividends.

Corporation

A legal entity separate from its owners, offering limited liability protection, the ability to raise capital through the sale of shares, and perpetuity.