Suppose That a Special Interest Group Comprises 1 Percent of Society

question 50

True/False

Suppose that a special interest group comprises 1 percent of society, and a proposed law would give them $10,000 of benefits but cost society $900,000. The special interest group will oppose this policy because the costs exceed the benefits.

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Definitions:

Present Value

The modern-day value of a potential future sum of money or sequence of financial inflows, accounting for a particular return rate.

Registered Education Savings Plan

A tax-advantaged savings account in Canada designed to help save for a child's post-secondary education.

Compounded Semi-annually

Involves calculating and adding interest to the principal amount of an investment or loan twice per year, leading to compound growth over time.

Semi-annual Withdrawals

Withdrawals made twice a year from an account or investment.