Economists Use the Term Shortsightedness Effect to Describe Which One

question 40

Multiple Choice

Economists use the term shortsightedness effect to describe which one of the following phenomena?

• A) Politicians tend to support actions that have immediate and easily recognized current benefits.
• B) Individuals are apt to spend their income on goods that bring immediate personal benefits.
• C) Voters elect politicians on the basis of campaign promises, regardless of what they may do once they are in office.
• D) Politicians support the programs of special interest groups in order to get elected; however, special interest support may be detrimental later, costing politicians popularity after the programs are implemented.

Understand the effects of stock splits on the number of shares outstanding and the stock's market price.

Interpret financial statement data to calculate changes in earnings per share.

Understand the components and structure of the stockholders' equity section of the balance sheet.

Demonstrate how to journalize equity transactions including stock issuance and treasury stock transactions.

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Definitions:

Simple Linear Regression

A statistical method for modeling the relationship between a single independent variable and a dependent variable by fitting a linear equation to observed data.

Least Squares

A mathematical method used to determine the best-fitting line through a set of data points by minimizing the sum of the squares of the differences between observed and estimated values.

Standard Deviation

A measure of the dispersion or variability of a set of data points around the mean, indicating how spread out the data points are.

SPSS

Statistical Package for the Social Sciences, a software package used for data management and statistical analysis.