Public Choice Analysis Indicates

question 148

Multiple Choice

Public choice analysis indicates

• A) politicians under representative democracy are led as if by an invisible hand to adopt legislation that enhances the wealth of a nation.
• B) political structures consistent with economic efficiency tend to emerge naturally from the ordinary political process.
• C) constitutional rules establishing procedures and limiting the ability of the political process to engage in redistributive activities can improve the economic efficiency of government.
• D) all of the above are correct.

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Definitions:

Equivalent Units

A concept used in process costing that converts partially completed units into a number of fully completed units for accounting purposes.

Weighted-Average Method

A method for determining the cost of goods sold and the value of the remaining inventory by calculating the average cost of all available units for sale.

Conversion Costs

The sum of direct labor and manufacturing overhead costs, representing the costs to convert raw materials into finished products.

Direct Materials

The raw materials that are directly traced and integrated into the final product and are a significant part of the manufacturing cost.