Suppose That a Special Interest Group Makes Up 0

question 273

Multiple Choice

Suppose that a special interest group makes up 0.5% of the population. If a policy transfers $600 to the special interest at a cost of $100,000 to society, will the special interest group lobby for this policy?

• A) Yes, the benefits of $600 outweigh the costs of $500.
• B) No, the benefits of $30 are less than the costs of $100,000.
• C) No, the benefits of $30 are less than the costs of $50,000
• D) They'll be indifferent since the benefits equal the costs.

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