Suppose That a Special Interest Group Makes Up 2 Percent

question 45

Multiple Choice

Suppose that a special interest group makes up 2 percent 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 $700 outweigh the costs of $42.
• B) No, the benefits of $600 are less than the costs of $2,000.
• C) They'll be indifferent since the benefits equal the costs.
• D) No, the benefits of $600 are less than the costs of $100,000.

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Definitions:

Fur Trade

The historical trade and exchange of animal pelts (primarily beaver, fox, and mink) driven by demand for fur clothing and accessories.

Millions of Acres

refers to a vast expanse of land, often used in the context of land ownership, agriculture, or conservation to denote a very large area.

Dutch Empire

Was a collection of territories controlled by the Netherlands from the 17th to the 20th centuries, notably in the Americas, Africa, Asia, and Australia, known for its trade networks and colonial activities.

Formal Treaty

A legally binding agreement between two or more sovereign states or international entities, often ratified by the respective parties' legislative bodies.