Which of the Following Best Describes the Outcome of the 1974

question 60

Multiple Choice

Which of the following best describes the outcome of the 1974 Federal Election Campaign Act?

• A) It created the Federal Election Commission.
• B) It placed limits on the sums that individuals and committees can contribute to candidates.
• C) It created an effective way to enforce campaign rules.
• D) It created the Federal Election Commission and placed limits on the sums that individuals and committees can contribute to candidates.
• E) It made political action committees unconstitutional.

---

Definitions:

Fixed Cost

Expenses that remain constant regardless of the firm's production volume.

Output

The cumulative quantity of products or services generated by a corporation or nation.

AVC

Average Variable Cost is the total variable costs divided by the quantity of output.

Diminishing Returns

A principle in economics where each additional unit of input results in a progressively smaller increase in output.