Financial Contributions to the Campaigns of Members of Congress, State

question 32

Multiple Choice

Financial contributions to the campaigns of members of Congress, state legislators, and other elected officials by firms that seek special interest legislation that make the firms better off are

• A)examples of rent seeking.
• B)illegal.
• C)the result of the voting paradox.
• D)irrational because elected officials will almost always act in the interest of the voters who have to pay the cost of the legislation.

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Definitions:

Equivalent Units

A concept used in cost accounting to convert partially completed goods into the equivalent of fully completed units.

Materials

Refers to the substances or components that are used to manufacture or create a product.

First Processing Department

The initial stage or section in a manufacturing process where raw materials are first transformed into work-in-progress.

Total Cost Transferred

The combined cost of goods or services that is moved from one process or department to another within the same company.