When a Coalition of Credit Card Companies Forms an Interest

question 63

Multiple Choice

When a coalition of credit card companies forms an interest group called the Partnership to
Protect Consumer Credit,this suggests that

• A)credit card companies are interested in the public good.
• B)private interests are hiding behind the ideals of public interests.
• C)public interest groups are now actively involving private corporations.
• D)the free-rider problem does not apply to private corporations.

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Definitions:

Rents

Payments made for the use of property or land; in economics, it also refers to earnings in excess of the minimum amount needed to keep a factor of production in its current use.

Dollar Loss

A decrease in the value of an investment, expressed in dollar terms, compared to its purchase price.

AIG

American International Group, a multinational finance and insurance corporation known for its extensive global operations and services.

Fannie Mae

A government-sponsored enterprise (GSE) in the United States aimed at expanding the secondary mortgage market by securitizing mortgages into mortgage-backed securities.