Which Aspect of the Committee System Does NOT Support Members

question 83

Multiple Choice

Which aspect of the committee system does NOT support members' reelection prospects?

• A) The division of labor allows for policy specialization.
• B) Party leaders can raise money to funnel to other legislators.
• C) Legislators can more easily claim credit for particular policy areas.
• D) Members can become experts in an area and use that in gaining funding for their district.
• E) Members can support pork-barrel projects based on the needs of their district.

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Definitions:

Cost of Capital

Signifies the expected rate of return that market participants demand in order to commit money to an investment, considering risk and potential gains.

IRR

Internal Rate of Return (IRR) is a financial metric used to evaluate the profitability of investments, indicating the annualized rate of return that sets the net present value of all cash flows (both positive and negative) from a particular project equal to zero.

NPV

Net Present Value; a method used to evaluate the profitability of an investment by calculating the difference between the present value of cash inflows and outflows.

Payback Period

The length of time it takes for an investment to generate enough cash flow to recover its initial cost.