Which of the Following Explains Why Big Business Typically Spends

question 74

Multiple Choice

Which of the following explains why big business typically spends more on rent-seeking activities than consumers?

• A) Lobbying is a public good to consumers.
• B) Lobbying is a public good to businesses.
• C) Labor unions in the involved firms.
• D) Lobbying is a public good to businesses and labor unions in the involved firms.

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Definitions:

Bargaining Agent

A representative designated by employees to negotiate with the employer on their behalf, typically regarding wages, hours, and other terms of employment.

Settlement Range

The range within which parties are willing to negotiate and reach an agreement in a dispute.

Bargaining Committee

A group of employees or union members designated to negotiate labor contracts with their employer.

Hourly Wage

Payment to employees based on the number of hours worked, set as a rate per hour.