Why Do Interest Groups Typically Offer Material Benefits to Their

question 33

Multiple Choice

Why do interest groups typically offer material benefits to their members?

• A) to foster greater diversity among group members
• B) to encourage only the most committed supporters to become involved
• C) to discourage members from joining more than one interest group
• D) to overcome the free rider problem

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Definitions:

Geometric Return

The average rate of return on an investment that is compounded over multiple periods, reflecting the compound interest effect.

Investment

Channeling money into ventures with the prospect of earning profits or generating income.

Standard Deviation

A statistical measure representing the dispersion or variability around the mean (average) of a set of data points.

Annual Returns

The percentage change in an investment's value over a one-year period, including both capital gains and dividends, used to assess its performance.