According to public choice theory, why might government policy benefit only a narrow interest group?
a. If the benefits to the narrow interest group are relatively large, they have an incentive to invest a lot of money and effort in lobbying government.
b. If the costs of this policy are spread out among the general population, and are a very small burden for anyone person, then those paying the costs have little incentive to organize opposition.
c. Both a. and b. are correct.
d. None of the above is correct.
c
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A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
In order to reduce labor supply, a union must be able to
a. do all of the following b. force all employers in the industry to hire only union members c. set wages d. agree to wage concessions e. increase union membership
Refer to Figure 2-18. Which two arrows in the diagram depict the following transaction: Barney earns $250 for selling scissors and razors to Floyd's Barber Shop
A) J and M B) K and G C) K and M D) J and G
An autonomous appreciation of the U.S. dollar makes American goods ________ expensive relative to foreign goods which ________ net exports in the U.S
A) less; decreases B) less; increases C) more; decreases D) more; increases