Which of the Following Statements Concerning the Public Funding of Presidential

question 12

Multiple Choice

Which of the following statements concerning the public funding of presidential campaigns is incorrect?

• A) Federal law requires the presidential candidates from the major parties to use public funding during the general election.
• B) Many presidential candidates are opting not to accept public funding in order to be free of any spending restrictions.
• C) Third parties can receive public funding only if they received 5 percent of the vote in the previous presidential election.
• D) Taxpayers may contribute to the public funding of presidential campaigns, at no cost to themselves, on their federal income tax forms.
• E) Candidates who accept matching funds may spend no more than $42 million, including matching funds, in their presidential primary campaigns.

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Definitions:

Demand

The desire and ability of consumers to purchase goods and services at given prices.

Perfectly Elastic

Describes a situation in economics where the demand or supply for a product can vary infinitely with a small change in price.

Inelastic

A situation in which the demand for a product does not increase or decrease correspondingly with a fall or rise in its price.

Perfectly Elastic

Describes a situation where the quantity demanded or supplied changes infinitely in response to any change in price.