Policy Is Conducted by Rule If Policymakers

question 71

Multiple Choice

Policy is conducted by rule if policymakers:

• A) announce in advance how policy will respond to various situations and commit themselves to following through on this announcement.
• B) are free to size up the situation case by case and choose whatever policy seems appropriate at the time.
• C) set policy according to election results, i.e., set policy by rule of the ballot box.
• D) manipulate policy to ensure both low inflation and unemployment on election day.

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Definitions:

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity, allowing for more accurate budgeting in variable operational conditions.

Materials Price Variance

The difference between the actual unit price paid for an item and the standard price, multiplied by the quantity purchased.

Standard Cost

A predetermined cost of manufacturing a single unit or a number of product units during a specific period under current or anticipated conditions.

Time Of Purchase

The specific point in time when goods or services are bought, which can influence the cost and availability.