Which of the Following Statements About Political Power,or "Who Governs

question 66

Multiple Choice

 Which of the following statements about political power,or "who governs?" is most accurate? 

• A) The key to understanding power is to understand the monetary costs of different political decisions. 
• B) Political power can usually be inferred by knowing what laws are on the books. 
• C) Political power can usually be inferred by knowing what administrative actions have been taken. 
• D) Power cannot be realized without institutional arrangements. 
• E) Most power derives from psychological and social factors such as friendship, loyalty, and prestige.

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Definitions:

Natural Monopoly

A market structure where a single supplier is most efficient due to the high fixed or startup costs of operating, making it impractical for new entrants to compete.

Returns to Scale

Describes how output changes in response to a proportional increase in all inputs in the production process; can be classified as increasing, constant, or decreasing.

Consumer Surplus

The gap between the aggregate amount consumers are willing to pay for a good or service and the sum they actually pay.

Producer Surplus

The difference between the amount producers are willing to accept for a good or service relative to its market price, essentially the profit producers make.