Why Do Electoral Rules Affect How Many Parties a Country

question 13

Multiple Choice

Why do electoral rules affect how many parties a country has?

• A) mechanical effect
• B) strategic voting
• C) strategic entry
• D) all of these, because the mechanical effect provides incentives for (B) and (C)

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Definitions:

Capital Lease

A lease classified as a purchase by the lessee, whereby the lessee records the leased asset as an owned asset on the balance sheet.

Bargain Purchase Option

A lease agreement provision allowing the lessee to purchase the leased asset at a price significantly lower than its expected fair market value at the end of the lease term.

Long-term Liability

A long-term liability is a financial obligation of a company that is due beyond one year, such as bonds payable, long-term leases, and pension obligations.

Capital Lease Obligations

Long-term lease agreements that are recorded as assets on a company's balance sheet, effectively treating the lease as a purchase of the asset.