When Voting Mechanisms Substitute for the Market Mechanism in Allocating

question 122

Multiple Choice

When voting mechanisms substitute for the market mechanism in allocating resources,we are relying on

• A)Cost-benefit analysis.
• B)Opportunity cost analysis.
• C)Public choice theory.
• D)Ballot box economics.

Recognize the significance of education and specific coursework in the success of new business owners.

Identify the stages of the start-up process model and the requirements at each stage.

Distinguish between environmental factors and personal or internal factors affecting small businesses.

Analyze the role of personal characteristics in successful entrepreneurship.

---

Definitions:

Future Dollars

Money that is adjusted for its future value, accounting for inflation or interest earned over time.

Expected Rate of Return

The anticipated amount of profit or loss an investor expects to achieve on an investment.

Interest Rate

The Interest Rate is the percentage at which interest is paid by a borrower for the use of money that they borrow from a lender.

Interest Rate

The proportion of a loan that is charged as interest to the borrower, typically expressed as an annual percentage of the loan outstanding.