When Politicians Support Policies That Benefit Small Interest Groups, Such

question 193

Multiple Choice

When politicians support policies that benefit small interest groups, such as farmers, at the expense of unorganized, widely dispersed groups, for example, taxpayers or consumers, this is a reflection of the

• A) tragedy of interest.
• B) special-interest effect.
• C) unorganized interest effect.
• D) shortsightedness effect.

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Definitions:

Inventory Returns Estimated

An approximation of the value or volume of goods that will be returned from customers back to the inventory.

Sales Refund Payable

A liability account that holds funds reserved for future refunds to customers for returned goods.

Sales Returns

Goods returned by customers to the seller after the sale, which result in a reduction of revenue previously recognized.

Adjusting Entry

A journal entry made in accounting records at the end of an accounting period to allocate income and expenditure to the correct periods.