The MOST Significant Difference Between 501(c)groups and 527 Political Committees

question 106

Multiple Choice

The MOST significant difference between 501(c) groups and 527 political committees is

• A)their tax-exempt status.
• B)that one involves soft money and the other is hard money.
• C)their affiliation with political action committees.
• D)their ability to endorse specific candidates.
• E)the amount of money they raised in 2008.

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Definitions:

Price

The amount of money required to purchase a good or service, determined by factors such as demand, supply, and production costs.

Producer Surplus

The difference between the amount that producers are willing and able to supply a good for and the amount they actually receive (selling price).

Equilibrium

A state in which market supply and demand are balanced, and as a result, prices become stable.

Market

A place or system where buyers and sellers interact to trade goods, services, or resources.