A Common Assumption That Economists Make About the Behavior of Elected

question 84

Multiple Choice

A common assumption that economists make about the behavior of elected officials is that they try to _____

• A) maximize the size of their salaries.
• B) maximize their control over the budget process.
• C) maximize the number of votes they receive in the next election.
• D) minimize the government's expenditures in order to balance the budget.
• E) conform to the wishes of special interest groups so that the government behaves as a single, consistent decision maker.

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Definitions:

Borrowing Costs

Borrowing Costs are the interest and other costs that an entity incurs in connection with the borrowing of funds.

U.S. GAAP

Generally Accepted Accounting Principles in the United States, a standard framework of guidelines for financial accounting.

IFRS

A collection of worldwide accounting standards created by the International Accounting Standards Board, known as International Financial Reporting Standards.

SEC

The U.S. Securities and Exchange Commission, a federal agency responsible for enforcing federal securities laws and regulating the securities industry, stock and options exchanges.