Public Choice Theorists Point Out That the Political Process

question 118

Multiple Choice

Public choice theorists point out that the political process:

• A) differs from the marketplace in that voters and congressional representatives often face limited and bundled choices.
• B) is less prone to failure than is the marketplace.
• C) is a much fairer way to allocate society's scarce resources than is the impersonal marketplace,which is dominated by high-income consumers.
• D) involves logrolling,which is always inefficient.

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Definitions:

Accounts Payable

A liability account that records amounts owed by a company to suppliers or creditors for purchases made on credit.

Merchandise Inventory

Represents the goods a company intends to sell to customers that are purchased and stored, evaluated as a current asset on the balance sheet.

F.O.B. Shipping Point

A term used in shipping contracts indicating that the buyer takes ownership and responsibility for goods once they leave the seller's premises.

F.O.B. Destination

A shipping term indicating that the seller retains risk and ownership of goods until they are delivered to the buyer's location.