Federal Spending for Local Projects That Serve Mostly to Transfer

question 5

Multiple Choice

Federal spending for local projects that serve mostly to transfer federal dollars to politician's constituents is defined as:

• A) direct democracy.
• B) political pork.
• C) marginal-cost pricing.
• D) Lindahl pricing.

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Definitions:

Futures Market

An exchange where participants can engage in the trading of futures contracts that are standardized. These contracts stipulate the buying of certain quantities of a commodity or financial instrument at a fixed price, with delivery arranged for a designated future time.

Spot Prices

The present selling or buying price of an asset available for immediate transfer.

Transaction Costs

The expenses incurred when buying or selling securities, including broker fees and taxes.