Scenario 6-1 The Quotation Below Relates to the Following Question(s)

question 145

Multiple Choice

Scenario 6-1
The quotation below relates to the following question(s) .
"The ideal policy,from the viewpoint of the state,is one with identifiable beneficiaries,each of whom is helped appreciably,at the cost of many unidentifiable persons,none of whom is hurt very much." (George Stigler,A Dialogue on the Proper Economic Role of the State)
-Refer to Scenario 6-1.This statement is probably

• A)incorrect because voters are well informed on a wide range of political issues.
• B)incorrect because the political process dilutes the influence of special interest groups,because like other citizens,their members have only one vote.
• C)correct because the well-informed voter will favor policies that cater to the views of small groups of people.
• D)correct because voters who have a strong personal interest in an issue will tend to support candidates who cater to their views,whereas most other voters ignore the issue.

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Definitions:

Income Statement

A financial report that shows a company's revenues and expenses over a specific period, ultimately revealing the net profit or loss.

Property, Plant

Refers to the long-term assets owned by a company that are used in its operations, including land, buildings, and machinery.

Operating Activities

The day-to-day functions of a business related to producing and selling goods or services, which are reflected in the company's cash flow.

Cash Dividends

Payments made by a corporation to its shareholder members. It's the portion of corporate profits paid out to stockholders.