If a Policy Transfers $100 to a Special Interest Group

question 104

Multiple Choice

If a policy transfers $100 to a special interest group at a cost of $4,000 to society, the group would lobby:

• A) for the policy no matter how large the special interest group is.
• B) for the policy if the group made up more than 5% of the population.
• C) for the policy if the group made up less than 1% of the population.
• D) against the policy if the group made up less than 2% of the population.

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Definitions:

Fair Value Through Profit

A financial accounting treatment where changes in fair value of assets or liabilities are recorded in the profit or loss for the period.

Short-Term Investments

Investments that are expected to be converted into cash within one year and are often seen in the form of stocks, bonds, or certificates of deposit held by a company.

Trading Investment

Securities purchased by a company not for long-term holding but rather for generating profit from short-term price fluctuations.