From an Economic Point of View,the Idea of Establishing a Government

question 25

Multiple Choice

From an economic point of view,the idea of establishing a government to further the will of the majority _____.

• A)means that marginal political costs and marginal political benefits are being equalized
• B)makes sense because the majority could exploit the minority
• C)does not make any sense because the majority could exploit the minority
• D)would lead to a large transitional gains trap

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Definitions:

Retained Earnings

The portion of a company's profit that is held back and not distributed to shareholders as dividends.

Net Sales

This is the revenue from all sales of goods and services less returns, allowances for damaged or missing goods, and discounts.

Cost of Goods SOLD

Expenses directly associated with the creation of goods a company sells, including costs for materials and labor.

Operating Expenses

Recurring expenses related to the central operations of a business, such as rent, utilities, and payroll, excluding costs of goods sold.