Policymaking in a Representative Democracy

question 70

Multiple Choice

Policymaking in a representative democracy

• A)is straightforward and does not involve any disagreement.
• B)benefits from the input of economists, even if their advice is not always followed.
• C)is conducted without the input of economists.
• D)is always based exclusively on the results of economic analysis.

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Definitions:

Fixed Costs

Costs that do not vary with the volume of production or level of activity within a certain range. These are expenses that must be paid regardless of business activity, such as rent or salaries.

Required Return

The minimum expected yield by investors as compensation for the level of risk associated with an investment.

Initial Investment

The amount of money used to start a project, business, or investment.

Cash Break-even Point

The point at which a business generates enough cash flow to cover its operating expenses, without generating a profit or loss.