In Efforts to Address the Free-Rider Problem, Interest Groups

question 56

Multiple Choice

In efforts to address the free-rider problem, interest groups

• A) use material incentives, but never purposive incentives.
• B) use material incentives and purposive incentives.
• C) use purposive incentives but not material incentives.
• D) use neither purposive incentives nor material incentives.
• E) none of the above. None of the previous choices makes sense because there is no difference between a material incentive and a purposive incentive.

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Definitions:

Frederic Bastiat

Frederic Bastiat was a 19th-century French economist and writer known for his advocacy of free markets, individual freedoms, and his critiques of socialism.

Balance-Of-Trade Deficit

A situation where a country's imports exceed its exports, leading to a negative balance in trade.

Coal

A fossil fuel used primarily for electricity generation and steel production, composed mostly of carbon.

Import Quotas

Import quotas are government-imposed limits on the quantity or value of goods that can be imported into a country, used to protect domestic industries and regulate international trade.