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:

Self-interest

The pursuit of personal advantage and well-being, often driving economic decisions.

Neoclassical Models

Economic theories and models that focus on the determination of prices, outputs, and income distributions in markets through supply and demand, often under the assumption of rational behavior and efficient markets.

Economic Outcomes

The results or consequences of economic activities, including growth, employment levels, and wealth distribution.

Context Affects

The influence of situational and environmental factors on perceptions, decisions, and behaviors.