The Public Choice Model Can Be Used to Examine Voting

question 83

Multiple Choice

The public choice model can be used to examine voting models that contrast the manner in which collective decisions are made by governments (state, local, and federal) and the manner in which individual choices are made in markets.Which of the following descriptions is consistent with the difference between collective decision-making and decision-making in markets?

• A)Everyone who votes must agree with a decision made collectively through government, but in markets individuals can make their own choices.
• B)Individuals are less likely to see their preferences represented in the outcomes of government policies than in the outcomes of markets.
• C)The cost of a government policy is determined by a majority vote of members of the public; decisions made in markets are based on individual willingness to pay.
• D)Choices made through government policies are more important than decisions individuals make through markets.

Understand the use and impact of reverse-scored items in questionnaires.

Grasp the limitations and challenges inherent in using self-report measures for assessing personality.

Distinguish between various types of validity (e.g., face, convergent, discriminant) and reliability (e.g., internal, test-retest) in measurement.

Comprehend basic statistical concepts and their application in psychological testing, including descriptive statistics.

---

Definitions:

Current Market Value

The amount of money for which an asset can be sold in the marketplace at the current time, reflecting the most recent transaction price possible.

Historical Cost

The original monetary value of an asset, based on the purchase price or investment cost at the time of acquisition, without adjustments for inflation or market value changes.

Common-Size Balance Sheets

Financial statements that present all line items as percentages of a common base figure rather than absolute numerical figures, facilitating comparison.

Financial Structure

The mix of debt and equity that a company uses to finance its operations and growth.