Political Scientist V

question 13

Multiple Choice

Political scientist V. O. Key Jr. argued that voters behave about as rationally and responsibly as we should expect. His rationale was

• A) that political leaders are to blame because they don't rationally discuss the issues or provide a framework for voters to understand the issues.
• B) that voters have limited collective intelligence.
• C) that political issues are quite complex and are beyond the level of expertise of most ordinary citizens.
• D) that the electorate is not at all interested in the issues, but seeks the "path of least resistance" by voting on appearance and demeanor.
• E) that there is not an adequate level of media sources to effectively disseminate information.

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Definitions:

Internal Rate of Return

The discount rate that makes the net present value of all cash flows from a particular project zero.

Interest Rate

Interest: the financial charge applied to the borrower by the lender, calculated as a percentage of the principal for asset usage.

Corporate Tax Rate

The tax imposed on the net income of a company by the government.

WACC

Weighted Average Cost of Capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is proportionately weighted, including all sources of capital like equity, debt, and any other funding sources.