In Order to Overcome the ________ Problem, Interest Groups Often

question 80

Multiple Choice

In order to overcome the ________ problem, interest groups often provide ________ to their members.

• A)free-rider; collective goods
• B)free-rider; selective benefits
• C)principal-agent; collective goods
• D)principal-agent; selective benefits

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Definitions:

Wood

The hard, fibrous structural tissue found in the stems and roots of trees and other woody plants.

Cost Function

A mathematical relationship that describes how the costs incurred by a firm vary with the level of output or activity.

Output

Refers to the quantity of products or services produced by a business, industry, or economy.

Marginal Cost

The increase in total cost that arises from an increase in production by one additional unit.