If a Special Interest Group Represents 10% of Society, and There

question 82

Multiple Choice

If a special interest group represents 10% of society, and there is a proposed public policy that will cost society $1 million and benefit that special interest group $1 million, which of the following is the most likely outcome according to public choice theory?

• A) The special interest group will not lobby for the proposed policy because the policy will cost the group more than it will benefit it.
• B) The special interest group will lobby for the proposed policy because the policy will benefit the group more than it will cost it.
• C) The special interest group will not be able to make any decision on the proposed policy because its benefits equal its costs.
• D) This policy will never be passed because the total costs and benefits are the same.

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