What Did Olson Believe Would Happen If Interest Groups Became

question 40

Multiple Choice

What did Olson believe would happen if interest groups became progressively stronger over time?

• A)Inequality would decline.
• B)Economic growth would stagnate.
• C)The country would become vulnerable to security threats.
• D)Companies and individuals would become more innovative.

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Definitions:

Multifactor APT

A finance model that describes asset prices by taking into account several risk factors, expanding on the Arbitrage Pricing Theory by including multiple variables.

Risk Premiums

Additional returns expected by an investor for taking on additional risk, over and above the risk-free rate of return.

Multifactor APT

Multifactor Arbitrage Pricing Theory, a model that describes the relationship between risk and expected return with multiple factors.