"When Small Groups Are Helped by a Government Action and Large

question 162

Multiple Choice

"When small groups are helped by a government action and large groups are hurt by that same action, the small group tends to lobby far more effectively than the large group; thus, policies tend to reflect the small group's interest, not the interest of the large group." This statement is:

• A) evidence of the futility of lobbying.
• B) the law of effective lobbying.
• C) the large/small rule.
• D) the general rule of political economy.

---

Definitions:

Bank Certificates

Short for "bank certificates of deposit (CDs)," which are time-deposit financial products offered by banks with fixed interest rates and maturity dates.

Money Market Funds

Investment funds that invest in short-term debt securities, offering high liquidity with a relatively low level of risk.

Restricted Cash

Cash that is not available for immediate use because it is reserved for a specific purpose.

Cash Equivalents

Short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.