Economist Mancur Olson Concluded That Groups

question 55

Multiple Choice

Economist Mancur Olson concluded that groups

• A)exercise too much power in the American system.
• B)increase the flexibility of government.
• C)can have their benefits reduced by concerted political opposition.
• D)are shown to have too much power when examined individually.
• E)help the government break away from long-term or previous commitments and apply funding to new problems or issues.

---

Definitions:

Consumer's Optimal

The point at which the combination of goods and services purchased by a consumer provides maximum satisfaction or utility, given the consumer's income and the prices of goods.

Price of Good

The amount of money required to purchase a specific good or service.

Substitution Effect

The economic principle that as prices rise or incomes decrease, consumers replace more expensive items with less costly alternatives.

Price Decrease

A reduction in the cost of goods or services, typically resulting from factors such as increased supply, decreased demand, or external market conditions.