Senator Blacklung Represents a State That Grows a Significant Amount

question 152

Multiple Choice

Senator Blacklung represents a state that grows a significant amount of tobacco. Not only do many of his constituents work for businesses in this industry, but the tobacco firms also make generous contributions to his reelection campaign. According to public choice theory, which of the following bills would Senator Blacklung be most likely to support?

• A) a bill proposing an increase in the tax on cigarettes to fund urban renewal programs across the nation
• B) a bill that would provide substantial subsidies for tobacco growers
• C) a bill proposing increased funding for a national antismoking awareness campaign financed by an increase in the tax on cigarettes
• D) a bill that would prohibit senators from accepting campaign contributions from firms who are involved in the production or sale of tobacco products

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Definitions:

Manufacturing Costs

Expenses directly related to the production of goods, including raw materials, labor, and overhead.

Total Raw Materials

The full amount of raw materials required for production, including both materials currently in stock and those needed to complete production.

Raw Materials Inventory

The stock of unprocessed inputs kept on hand by a manufacturing company for use in production.

Purchases

The acquisition of goods or services by a company in exchange for money, which are either used in the process of production or sold to customers.