Live and Teach Better Is an Interest Group That Was

question 18

Multiple Choice

Live and Teach Better is an interest group that was lobbying members of Congress to improve the health benefits of teachers in Wisconsin.Only about 20 percent of the total number of teachers in Wisconsin are members of the group and contribute to it.Recently,it was successful in lobbying for better health benefits for teachers throughout the city.Even though most of the teachers in the city did not make an effort to help the members of the interest group,they were able to enjoy the improved health benefit plans.In this scenario,the problem faced by the members of the interest group is known as the _____.

• A) dispersed cost problem 
• B) union decline problem​ 
• C) free rider problem​ 
• D) independent expenditure problem​ 
• E) free rater problem​

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Definitions:

Equilibrium Price

The price at which the quantity of a product offered is equal to the quantity of the product in demand.

Price Ceiling

A price ceiling is a government-imposed limit on how high a price can be charged for a product, service, or commodity, often intended to protect consumers from high prices.

Price Ceiling

A government-imposed limit on how high a price is charged for a product, above which it cannot legally rise.

Laissez Faire Policy

An economic doctrine stressing minimal government intervention in the marketplace, advocating for free markets to regulate themselves.