Public Choice Analysis Explains That

question 28

Multiple Choice

Public choice analysis explains that

• A) politicians have strong incentives to favor deficit finance over tax finance.
• B) policy makers believe the budget should be balanced except in times of war.
• C) the legislator who is a spending "watch dog" can save her constituents a substantial amount of tax money.
• D) given the way Congress operates, the apparent popularity of deficit financing is surprising.

Comprehend the effects of environmental and health conditions on gas exchange efficiency.

Understand the concept of loss aversion and how it influences investment decisions.

Interpret the significance of price levels and consumer response to perceived price fairness or gouging.

Recognize the role of emphasizing features of goods and services in microeconomic theory.

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Definitions:

Demand Curve

A visual depiction that illustrates the correlation between a product or service's price and the amount consumers are willing to purchase at different price points.

Profit-maximizing

How a company decides on the price and production rate that leads to the greatest financial gain.

Output Units

The quantity of product or service produced by a company or a production process.

Patent

A barrier to entry that grants exclusive use of the patented product or process to the inventor.