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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