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:

Variable Costing

An accounting method where only variable manufacturing costs are included in product costs, with fixed overhead expenses treated as period costs.

Variable Costing

This costing method includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs.

Variable Production Costs

Costs that vary directly with the level of production output, such as raw materials andDirect labor.

Product Costs

Costs that are incurred to create a product that includes direct materials, direct labor, and manufacturing overhead.