According to Economic Theory, It Is Often Rational for a Politician

question 171

Multiple Choice

According to economic theory, it is often rational for a politician to support special interest groups at the expense of unorganized, widely dispersed groups (for example, taxpayers or consumers)

• A) only when the gains that accrue to the special interest group exceed the costs imposed on other voters.
• B) when nonspecial-interest voters are unconcerned or uninformed about the issue, and campaign funds are readily available from the special interest group.
• C) only if the government action is socially efficient.
• D) only if the government action will reduce the monopoly power of business or labor and, thereby, lead to an improvement in the general welfare of consumers.