A Common Assumption That Economists Make About the Behavior of Elected

question 154

Multiple Choice

A common assumption that economists make about the behavior of elected officials is that they try to:

• A)maximize the size of their government salaries.
• B)maximize their control over the budget process.
• C)maximize the number of votes they receive in the next election.
• D)minimize the government's expenditures in order to balance the budget.
• E)conform to the wishes of special interest groups so that the government behaves as a single,consistent decision maker.

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Definitions:

Direct Materials

Raw materials directly used in the manufacturing of a product, which can be directly attributed to the finished product.

Fixed Overhead

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance, which are necessary for a business's operations regardless of output.

Variable Overhead

Costs that vary with production volume, such as utilities or materials used in production processes.

Fixed Overhead

A set of costs that do not vary with production volume, including salaries, rent, and insurance.