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

question 32

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)
-Which of the following groups does the quotation in Scenario 6-1 suggest would have the most influence on public sector action?

• A)taxpayers
• B)nonunion workers
• C)special interest groups
• D)consumers

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Definitions:

Equity

The residual interest or ownership rights in the assets of a company after deducting its liabilities, often reflected as shareholders' equity.

Assets

Economic resources owned or controlled by a business or individual that are expected to provide future benefits.

Liabilities

Financial obligations or debts owed by a business to external parties or entities.

Retained Earnings

The portion of net earnings kept by the company instead of being paid out to its shareholders in the form of dividends.