Moderate

Third parties arise when_____________?

Correct answer: B. a large portion of the electorate is dissatisfied with the other candidates

  • A. a charismatic leader is available
  • B. a large portion of the electorate is dissatisfied with the other candidates
  • C. the nation experiences severs economic recession or depression
  • D. new political ideologies emerge

Explanation

Third parties usually gain support when many voters are dissatisfied with the candidates or policies offered by the two major parties. Economic crises, new ideologies or charismatic leaders may help, but dissatisfaction is the general condition.

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Government revenue and expenditure are analysed through taxation, public borrowing, budgets, subsidies, transfers and public debt. The topic explains how fiscal policy affects resource allocation, income distribution, economic stability and growth, while distinguishing direct from indirect taxes, progressive from regressive taxation, and public goods from goods supplied by private markets.

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