What Is a Likely Explanation for Why the Budget of a Government

question 151

Multiple Choice

What is a likely explanation for why the budget of a government agency might increase beyond its optimal size?

• A) the paradox of voting
• B) the influence of the median voter
• C) the power of special-interest groups
• D) the allocative efficiency of government

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Definitions:

Premium on Bonds Payable

The amount by which a bond's selling price exceeds its face value, reflecting higher interest earnings for the investor than the market rate.

Conversion

The process of changing assets from one form to another, such as the conversion of raw materials into finished goods.

Mortgage Note Payable

A long-term liability listed on a company's balance sheet representing the borrower's obligation to repay a secured loan, typically used for real estate purchases.

Construction

The process of building, assembling, or forming infrastructure, buildings, or other constructed assets.