Which of the Following Explains Why Pork-Barrel Spending Is Often

question 174

Multiple Choice

Which of the following explains why pork-barrel spending is often approved, even when the spending is inefficient?

• A) Each representative has little incentive to oppose pork-barrel spending since the tax savings would accrue to taxpayers throughout the nation.
• B) General opposition to pork-barrel spending by a legislator would make it more difficult for the legislator to arrange for pork-barrel projects that provide concentrated benefits for his district.
• C) Logrolling increases the likelihood that pork-barrel projects will be approved.
• D) All of the above are correct.

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Definitions:

Maturity Date

The maturity date is the specified date on a financial instrument at which the principal (or final payment) is due to be paid to the holder.

Retained Earnings

The portion of a company's net income that is not distributed to shareholders as dividends but is retained by the company to reinvest in its core business or to pay debt.

Accounts Payable

The amounts owed by a business to its suppliers or creditors for goods and services received but not yet paid for.