If a Policy Transfers $100 to a Special Interest Group

question 29

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 percent of the population.
• C) for the policy if the group made up less than 1 percent of the population.
• D) against the policy if the group made up less than 2 percent of the population.

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Definitions:

Short Run

The time period in which at least one input is fixed.

U.S. Imports

Products and services purchased by United States residents from foreign nations.

Japanese Producers

Japanese producers refer to businesses or individuals based in Japan engaged in the production of goods or services, known for their innovation and quality across various industries.

Tariff

A levy placed by a government on imports to manage trade amounts and safeguard local sectors.