Which of the Following Statements About PACs Is True

question 66

Multiple Choice

Which of the following statements about PACs is true?

• A) They must report contributions from those who donate as little as one dollar.
• B) The maximum contribution is US$ 5,000.
• C) They are only permitted to donate money in congressional elections.
• D) They must raise money from at least two thousand people.

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Definitions:

Short Run

A period during which at least one input, such as plant size, is fixed and cannot be varied.

Marginal Decision Rule

The principle of making decisions based on the additional cost vs. additional benefit of the next unit.

MC < MR

This indicates a scenario in economic theory where the marginal cost of producing an additional unit is less than the marginal revenue gained from selling that unit.

Monopolistic Competition

A market structure characterized by many firms selling similar but not identical products, allowing for some degree of market power and product differentiation.