Why Is It Important for Interest Groups to Offer Selective

question 65

Multiple Choice

Why is it important for interest groups to offer selective benefits?

• A) It is necessary to limit the extent of the free-rider problem.
• B) If they do not, people will join political parties instead.
• C) Selective benefits are the only way to measure the success of an interest group.
• D) If they do not, people will accuse the groups of being antidemocratic.
• E) Selective benefits allow interest groups to make the profits they need to continue operating.

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Definitions:

Investment

The allocation of resources, usually money, with the expectation of generating an income or profit.

Retirement Fund

A Retirement Fund is a pool of funds contributed by employees, employers, or both for the future financial security of retirees.

Withdrawals

The act of taking money out of an account which can affect the account balance and interest calculations.

Monthly Payments

Regular payments made every month, commonly associated with loans, mortgages, or subscription services.