Which of the Following Explains Why Elected Representatives Will Find

question 179

Multiple Choice

Which of the following explains why elected representatives will find borrowing to be an attractive method of financing current government programs?

• A) the shortsightedness effect
• B) pork-barrel politics
• C) the invisible hand principle
• D) the public goods argument for government spending programs

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Definitions:

Schedule L

Schedule L is a tax form used by certain businesses to report their balance sheet details to the IRS, including assets, liabilities, and equity.

Schedule M-1

A form used by corporations filing U.S. federal corporate income taxes to reconcile financial statement income with tax return income.

Total Receipts

The total amount of money received by a business during a specific period, including sales, income, donations, and other forms of revenue.

Subchapter S Corporation

A type of corporation that meets specific Internal Revenue Code requirements and passes income, losses, deductions, and credits to its shareholders for federal tax purposes.