When It Comes to Deciding on Whether to Vote for the Incumbent

question 283

Multiple Choice

When it comes to deciding on whether to vote for the incumbent party, voters:

• A) are more likely to vote out the incumbent party after strong growth in disposable income.
• B) prefer incumbents the longer they have been in power.
• C) focus on the state of the economy in the year of the election.
• D) are farsighted and consider the impact of the incumbent party's future policies.

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Definitions:

Residual Income

Residual income is the profit remaining after deducting all required costs of capital from operating income.

Margin

Typically refers to the difference between the selling price of a product and its cost, used to measure profitability.

Turnover

The rate at which inventory or assets are sold and replaced or the rate at which employees are replaced in a business.

Residual Income

The amount of income that an investment or project generates above the minimum rate of return.