Live and Teach Better Is an Interest Group That Has

question 38

Multiple Choice

Live and Teach Better is an interest group that has been lobbying members of Congress to improve the health benefits of teachers in Wisconsin. Only about 20 percent of the total number of teachers in Wisconsin are members of the groupand contribute to it. Recently, it was successful in getting better health benefits for teachers throughout the city. Even though most of the teachers in the city did not make an effort to help the members of the interest group, they were able to enjoy the improved health benefit plans. In this scenario, the members of the interest group is faced with the issue known as the _____.

• A) dispersed cost problem
• B) union decline problem
• C) free rider problem
• D) independent expenditure problem
• E) free access problem

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Definitions:

Present Value

The present value of an anticipated amount of money or sequence of financial inflows, discounted by a particular return rate.

Payments

Amounts of money that are paid or due to be paid by one party to another for goods provided, services rendered, or debt obligations.

Compounded Quarterly

The process of calculating interest on a principal amount at a specified interest rate, with the interest being added to the principal at the end of every three months.

End-Of-Quarter Payments

Payments that are made at the end of each quarter, typically in a financial or leasing agreement.