How Do Audience Costs Help to Explain the Democratic Peace

question 73

Multiple Choice

How do audience costs help to explain the democratic peace?

• A)As the audience in a democracy is always against war, it is difficult for a democratic leader to enter into war.
• B)Audience costs no longer explain the democratic peace, as the audience in most democracies has a very weak knowledge of politics.
• C)Audience costs describe the cost to a political leader of reneging on a promise. As there are stronger audience costs in a democracy than in a non-democratic state, democratic leaders are less likely to break a promise and enter into war.
• D)Citizens and leaders in democracies respect the institutions of democracy, not only in their own country, but in other countries as well. They reject the idea of forcibly conquering another democracy.

Understand the financial planning around cash balances and the need for financing.

Recognize the importance of activity-based budgeting for resource planning.

Understand the distinctions between manufacturing and merchandising budget needs.

Understand the concept of operating leverage and its relevance to the cost structure.

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Definitions:

Production Process

The series of steps and procedures involved in the creation of a product from raw materials.

Cycle

In various contexts, it refers to a series of events that repeat in a predictable sequence or timeframe.

Trend

A general direction in which something is developing or changing, often identified in data analysis to forecast future values.

Level Shift

A term often used in time series analysis indicating a change in the mean level of a series at a certain point in time.