An Issue That Generates Substantial Benefits to a Small Group

question 14

Multiple Choice

An issue that generates substantial benefits to a small group of individuals while imposing a small cost on many others is called a

• A) special-interest issue.
• B) minority application.
• C) commons policy.
• D) national service.

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Definitions:

Long Run

A period of time in which all factors of production and costs are variable, allowing firms to adjust fully to market conditions.

Deadweight Loss

The loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved or achievable.

Profit-Maximizing

Profit-maximizing refers to a strategy or behavior where a firm or individual seeks to achieve the highest possible profit through their decisions and actions, often by adjusting output or pricing.

Externality

The uncompensated impact of one person’s actions on the well-being of a bystander