Why Is It Important for Interest Groups to Offer Selective

question 65

Multiple Choice

Why is it important for interest groups to offer selective benefits?

• A) It is necessary to limit the extent of the free-rider problem.
• B) If they do not, people will join political parties instead.
• C) Selective benefits are the only way to measure the success of an interest group.
• D) If they do not, people will accuse the groups of being antidemocratic.
• E) Selective benefits allow interest groups to make the profits they need to continue operating.

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Definitions:

Noninterest-Bearing Note

A promissory note that does not accrue interest over its lifetime, meaning the borrower repays only the principal amount.

Current Interest Rates

Current interest rates are the rates at which interest is paid by borrowers for the use of money that they borrow from lenders.

Notes Receivable Dishonored

A note that was not paid by the maker at its due date, considered a defaulted payment.

Protest Fee

A fee charged for formally declaring a party's disagreement or refusal to accept a financial obligation or document, often relating to banking instruments like checks.