You Are a Policymaker and a Lobbyist Comes to You

question 43

Multiple Choice

You are a policymaker and a lobbyist comes to you, arguing that his industry is important for national security and has important spillover benefits. Why might you be suspicious of his claims?

• A) He may not know anything about the industry he represents.
• B) His industry benefits from tariffs that decrease foreign competition.
• C) The lobbyist has the same interests as the rest of the country.
• D) Every industry is important for national security.

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Definitions:

Premium Price

The higher price charged for a product or service that is perceived to have greater value compared to alternatives.

Agency Relationship

A legal relationship in which one party (the agent) is authorized to act on behalf of another (the principal) in business transactions.

Genetically Modified Seed

A seed that has been altered using genetic engineering techniques to possess certain traits such as pest resistance or increased nutrient value.

Purchasing Agent

An individual or company responsible for buying goods and services for another entity.