In Which Case Is the Political Process Most Likely to Result

question 32

Multiple Choice

In which case is the political process most likely to result in the acceptance of efficient projects and rejection of inefficient projects?

• A) The benefits are highly concentrated, and costs are widespread among voters.
• B) The costs are highly concentrated, and the benefits are widespread among voters.
• C) Both the benefits and costs are widespread among voters.
• D) The benefits accrue primarily in the future, while the costs are more visible during the current period.

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Definitions:

Profit Margin

A financial metric indicating the percentage of revenue that exceeds the costs of goods sold, essentially measuring how much out of every dollar of sales a company actually keeps in earnings.

Invested Assets

Resources or capital put into financial instruments, land, buildings, or other assets with the expectation of generating income or profit.

Operating Income

Income generated from a company's core business operations, excluding any profits or losses from investments and interest or taxes.

Transfer Price

The price charged for goods or services transferred between departments or divisions within the same company or between affiliated entities.