Public Choice Theory Assumes Each Voter Will Tend to Support

question 46

Multiple Choice

Public choice theory assumes each voter will tend to support the political candidate who offers

• A) programs with the largest benefits to society.
• B) the highest potential for being a good leader in times of war.
• C) programs that create the most equal distribution of income.
• D) to provide the voter with the most personal benefits at the least personal cost.

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Definitions:

Fixed Production Costs

Expenses that do not fluctuate with the level of production output, such as depreciation on factory buildings and salaries of certain managers.

Depreciation

An accounting method of allocating the cost of a tangible asset over its useful life.

Period Cost

Costs that are expensed in the period they are incurred and are not directly tied to production activity.

Indirect Costs

Costs that cannot be directly linked to the production or sale of a specific product or service, such as administration, rent, and utilities.