If You Were a Member of the Selectorate but Not

question 50

Multiple Choice

If you were a member of the selectorate but not the winning coalition, what type of institutions would you want to set up (assuming that you wanted to receive as many goods as possible) ?

• A) Institutions that would generate a small W and a small W/S.
• B) Institutions that would generate a small W and a large W/S.
• C) Institutions that would generate a large W and a large W/S.
• D) Institutions that would generate a large W and a small W/S.

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Definitions:

Present Value

Calculated by discounting future cash flows to understand their worth in today's terms, taking into account the time value of money.

Simple Interest

Interest calculated on the principal amount only, not on accrued interest from previous periods.

Compounded Annually

Interest on an investment that is calculated at the end of the year on both the initial principal and the accumulated interest from previous periods.

Invests

The initiative of funneling financial capitals in order to gain profits or generate income.