Members of Congress Are Granted Generous Franking Privileges That

question 58

Multiple Choice

Members of Congress are granted generous franking privileges that

• A) permit them to mail letters to their constituents for free.
• B) allow them to charge items to a special expense account.
• C) allow members unlimited phone calls to their district without charge.
• D) permit them to receive four, round-trip airfares to their district.
• E) allow them to hold events such as barbeques in their districts at taxpayer expense.

Describe the dilemma of trust between agents and constituents.

Analyze the outcomes of being perceived as a weak or compromising negotiator.

Explain the relevance of face threat sensitivity in negotiation.

Understand the purpose of communicating with bystanders and audiences during negotiations.

---

Definitions:

Elastic Supply

A situation where the quantity of a good supplied by producers changes significantly in response to a small change in price.

Tax Burden

The measure of taxes paid as a proportion of income or the overall economic impact of taxes on an individual or business.

Own Price Elasticity

A measure of the responsiveness of the quantity demanded of a good to a change in its own price.

Specific Tax

A tax that is levied as a fixed amount per unit of a good or service, rather than as a percentage of the price.