Economists Use the Term Shortsightedness Effect to Describe Which One

question 40

Multiple Choice

Economists use the term shortsightedness effect to describe which one of the following phenomena?

• A) Politicians tend to support actions that have immediate and easily recognized current benefits.
• B) Individuals are apt to spend their income on goods that bring immediate personal benefits.
• C) Voters elect politicians on the basis of campaign promises, regardless of what they may do once they are in office.
• D) Politicians support the programs of special interest groups in order to get elected; however, special interest support may be detrimental later, costing politicians popularity after the programs are implemented.

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Definitions:

Finished Goods Inventory

The stock of completed products that are ready for sale but have not yet been sold to customers.

Materials Inventory

A stock of raw materials and components that are stored by a company and used in the production of its goods.

Transactions

The exchanges or transfers of goods, services, or funds that result in changes to the financial position of a business.

Journalize

The process of recording financial transactions in a company's journal, marking the first step in the accounting cycle.