Special Interest Groups Have a Large Incentive to Be ________

question 47

Multiple Choice

Special interest groups have a large incentive to be ________ about legislation that benefits them directly, whereas voters tend to be ________ regarding these issues.

• A) rationally informed; irrationally informed.
• B) rationally ignorant; irrationally ignorant.
• C) rationally informed; rationally ignorant.
• D) irrationally informed; rationally ignorant.

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Definitions:

Reasonable Assurance

A high level of assurance provided by auditors indicating that financial statements are free from material misstatement, though not a guarantee.

Accrue

The accumulation or increase of something over time, especially payments or benefits that are recognized before cash is exchanged.

Endowment Contributions

Gifts made to institutions, typically non-profit organizations or universities, intended to be invested to support the organization’s long-term financial health.

Restricted Fund Method

An accounting approach used for reporting where resources are segregated based on restrictions or designations imposed by donors or regulators.