Even in Democratic Governments, We Tend to Have a Problem

question 122

Multiple Choice

Even in democratic governments, we tend to have a problem with accountability due to the following reasons, except:

• A) So many government activities are undertaken simultaneously
• B) Civil-service protections apply to many bureaucrats
• C) The electorate cannot monitor each and every action of the government
• D) There is the markets' self-correcting mechanism in government

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Definitions:

Absorption Costing

An accounting method that includes all direct costs and fixed and variable overhead costs in the cost of a product.

Required Return

The minimum rate of return needed from an investment to make it worthwhile for the investor.

Selling Price

The amount of money charged to customers for a product or service, potentially including costs, profit margins, and taxes.

Traceable Fixed Expense

Costs that can be directly linked to a specific product, department, or segment and do not change with the level of production.