Theodore Lowi's Theory of Interest-Group Liberalism

question 43

Multiple Choice

Theodore Lowi's theory of interest-group liberalism

• A)constitutes a partial and wrongful abdication by government of its authority over policy.
• B)argues that lawmakers are rightly prevented from using government to promote group interests.
• C)posits that interest groups result in an efficient use of society's resources.
• D)describes the effect of groups on policy,resulting in a system of rule by majorities.
• E)deals with the tendency of officials to support the policy demands of the interest group or groups that have a special stake in a policy.

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Definitions:

Cash Flows

The total amount of money being transferred into and out of a business, particularly in terms of operational, investment, and financing activities.

Interest Rate

The percentage of a sum of money charged for its use, typically expressed as an annual percentage rate.

Interest Rate

The percentage of a loan amount charged by lenders to borrowers for the use of money, or the rate earned on deposit accounts.

Net Present Value

A method used in capital budgeting to analyze the profitability of an investment by calculating the difference between the present value of cash inflows and the present value of cash outflows over a period of time.