A Common Assumption That Economists Make About the Behavior of Elected

question 84

Multiple Choice

A common assumption that economists make about the behavior of elected officials is that they try to _____

• A) maximize the size of their salaries.
• B) maximize their control over the budget process.
• C) maximize the number of votes they receive in the next election.
• D) minimize the government's expenditures in order to balance the budget.
• E) conform to the wishes of special interest groups so that the government behaves as a single, consistent decision maker.

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Definitions:

Rate Variance

Rate Variance is the difference between the standard cost and actual cost paid for something, often analyzed in budgeting to manage financial performance.

Budget Reports

Budget Reports compare the actual financial operations against the planned or budgeted figures to help in financial planning and control.

Monthly

Pertaining to or calculated on the basis of one month.

Master Budget

A comprehensive financial planning document that consolidates all of a business's budgets and plans for the future, including sales, production, and financial budgets.