A System in Which Citizens Elect Officials to Make Decision

question 46

Multiple Choice

A system in which citizens elect officials to make decision on their behalf is:

• A) direct democracy
• B) representative democracy
• C) responsible government
• D) autocracy

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Definitions:

Split-off Point

The stage in a production process where joint products are identifiable or separable into individual products.

Avoidable Cost

An expense that can be eliminated if a particular decision is made, not incurred if a specific activity is discontinued.

Fixed Production Cost

The portion of total production costs that does not change with the level of output, including costs such as rent, salaries, and insurance.

Vertical Integration

The involvement by a company in more than one of the activities in the entire value chain from development through production, distribution, sales, and after-sales service.