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.

---

Definitions:

More Elastic

Describes a greater sensitivity of demand or supply to changes in price or other economic factors.

Perfectly Inelastic

A market situation where the quantity demanded does not change as the price changes.

Demand Curve

A graph showing the relationship between the price of a good or service and the quantity of that good or service that consumers are willing to buy at each price point.

Perfectly Elastic

Describes a situation in economics where a small change in price leads to an infinite change in quantity demanded or supplied.