Which of the Following Is an Example of the Free-Rider

question 22

Multiple Choice

Which of the following is an example of the free-rider (or collective action) problem?

• A)an elected official accepting bribes from an interest group
• B)an elected official relying on information from lobbyists
• C)an environmental group struggling to raise funds for a "clean air" campaign
• D)an environmental group disagreeing on what policy goals to pursue
• E)a political action committee contributing to candidates from both major political parties

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Definitions:

Gross Method

An accounting method for recording purchases at the full invoice price without deducting any cash discounts offered.

Net Method

An accounting technique that records purchases after discounts, where the purchase price is reduced by the expected discount amount.

Journal Entries

Journal entries are the foundational recordings of all financial transactions in the double-entry bookkeeping system, indicating debits and credits to accounts.

Normal Balance

The side (debit or credit) of an accounting ledger where increases are recorded, reflecting the natural balance of an account.