What Does the Process of Collective Action Tell Us About

question 38

Multiple Choice

What does the process of collective action tell us about why consensus is hard to come by?

• A) Individuals want outcomes at their ideal points and refuse to engage in bargaining and compromise.
• B) Since power is dispersed across different institutions, there is a lack of coordination.
• C) Any legislation will have policy winners and losers when societal goals are at odds with individually rational actions.
• D) The system of separation of powers was not designed to handle the levels of polarization that exist in the current political system.

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Definitions:

Dependent Demand

The demand for components or raw materials that is directly tied to the demand for the final product they contribute to creating.

Production Order Quantity (POQ) Model

An inventory management model that determines the most economical quantity of a product to order or produce, balancing setup costs with holding costs.

EOQ Problem

Economic Order Quantity (EOQ) refers to the ideal order quantity a company should purchase to minimize inventory costs including holding, shortage, and order costs.

Lot Size

The quantity of items that are processed, produced, or ordered as a batch.