Policies That Benefit Special Interest Groups Are Often Adopted by Governments

question 6

Multiple Choice

Policies that benefit special interest groups are often adopted by governments because

• A) these groups in the aggregate tend to represent a broad social consensus.
• B) such groups are more efficient in the allocation of resources than government bureaucracies; hence, support of their programs raises economic efficiency.
• C) doing so equates marginal social benefits with marginal social costs.
• D) such groups contribute more to government revenues than they receive in the form of public benefits.
• E) the gains of these relatively small groups come at the expense of a large number of people, each of whom loses very little and so is less aware of the loss.

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Definitions:

Concealment

Concealment involves hiding or withholding information that should otherwise be disclosed, often with the intent to defraud or deceive.

Negligent Misrepresentation

A false statement made carelessly that induces someone to act to their detriment, creating legal liability.

Sales Puffery

Exaggerated or boastful statements about a product or service that are not meant to be taken literally and are thus not legally binding promises or warranties.

Justifiably Relied

A principle where a party's action or decision is based on another's representations or promises, perceived as reasonable.