Public Choice Theory Indicates That Competitive Forces Between Candidates in Elections

question 210

Multiple Choice

Public choice theory indicates that competitive forces between candidates in elections provide a politician with a strong incentive to offer voters a bundle of political goods that she believes

• A) is best for the economic and political situations the country faces.
• B) will most likely clear the legislative process.
• C) will increase the welfare of society.
• D) will increase her chances of winning elections.

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Definitions:

Unrealized Loss

A loss that results from holding onto an investment that has decreased in value, but has not yet been sold by the investor.

Net Income

The final financial gain of a business after subtracting total costs and taxation from its aggregate income.

Extraordinary Loss

Unusual and infrequent losses that are not part of the ordinary activities of a business, such as losses from natural disasters.

Discontinued Operations

Parts of a company's core business or product lines that have been sold, disposed of, or eliminated from operations, often reported separately in financial statements.