In a Democratic Society, the Idea That There Is a Tendency

question 195

Multiple Choice

In a democratic society, the idea that there is a tendency for a given policy to reflect the middle view of all political ideals is called the:

• A) voting paradox.
• B) arrow impossibility theorem.
• C) median voter theorem.
• D) public choice theorem.

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Definitions:

Discount on Bonds Payable

The difference between the face value of a bond and the lower price at which it is sold, representing additional interest expense to the issuer over the bond's life.

Interest Expense

Costs incurred by an entity for borrowed funds, which are recognized on the income statement.

Fixed Asset

Long-term tangible assets, such as machinery and buildings, used in the operation of a business, not expected to be consumed or converted into cash in the short term.

Cash Flow Statement

A financial statement that provides aggregate data regarding all cash inflows and outflows a company receives from its ongoing operations, investment, and financing activities.