Why Are Free Riders an Issue for Interest Groups

question 84

Multiple Choice

Why are free riders an issue for interest groups?

• A) Free riders receive the group's membership benefits without actually contributing to it.
• B) Free riders use up far more resources than those who contribute to an interest group.
• C) Free riders diminish the power and influence of interest groups at the local level.
• D) Free riders prevent interest groups from achieving their stated public policy goals.

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Definitions:

Transportation Costs

Expenses associated with moving goods from one location to another, including fuel, labor, and maintenance of vehicles, among other factors.

Inventory Effect

The impact that changes in inventory levels have on a company's financial statements, including effects on working capital, cash flow, and profitability.

Inverse Relationship

A relationship between two variables where one variable increases as the other decreases, or vice versa.

Lost Sales

Potential sales opportunities that have been missed or unattained, often due to factors like stockouts or service issues.