Scenario 6-1 The Quotation Below Relates to the Following Question(s)

question 32

Multiple Choice

Scenario 6-1
The quotation below relates to the following question(s) .
"The ideal policy,from the viewpoint of the state,is one with identifiable beneficiaries,each of whom is helped appreciably,at the cost of many unidentifiable persons,none of whom is hurt very much." (George Stigler,A Dialogue on the Proper Economic Role of the State)
-Which of the following groups does the quotation in Scenario 6-1 suggest would have the most influence on public sector action?

• A)taxpayers
• B)nonunion workers
• C)special interest groups
• D)consumers

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Definitions:

Economic Profits

Profits earned by a firm after accounting for both its explicit and implicit costs, including opportunity costs.

Property Rights

The legal rights to use, control, and derive benefits from a resource, good, or property.

Natural Resources

Materials or substances occurring in nature which can be exploited for economic gain, such as minerals, forests, water, and fertile land.

Economic Losses

Financial deficits that occur when costs exceed revenues, or when the economic value generated is less than the resources used.