Much of Public Choice Argues That What the Public Wants

question 217

Multiple Choice

Much of public choice argues that what the public wants isn't reflected in elected officials' actions. Yet there is a strong connection between famine prevention and democracy (more democracy means less famine) , and this "exception" is completely consistent with ideas from public choice. Why?

• A) because the median voter doesn't want to starve
• B) because voters have a strong incentive to be informed
• C) because voters have strong memories about times they don't eat
• D) because the costs of corruption are concentrated rather than diffuse

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Definitions:

Power

In a business context, it often refers to the influence or capacity of a company or individual to effect decisions and control resources.

Variable Overhead Rate Variance

The difference between the actual variable overhead incurred and the standard cost of the variable overhead applied to a production process.

Variable Overhead Rate Variance

The difference between the actual variable overhead rate incurred and the expected (or standard) rate, multiplied by the actual activity level.

Variable Overhead Rate Variance

A measure used in managerial accounting to compare the actual variable overhead incurred to the expected overhead cost based on the standard cost system.