Why Are Special Interest Groups So Powerful

question 63

Multiple Choice

Why are special interest groups so powerful?

• A) Because voters are rationally ignorant about how laws designed to help special interest groups are harmful to everyone else.
• B) Because special interest groups have a self-interest in passing favorable legislation-they stand to gain millions of dollars, while each taxpayer loses only several dollars.
• C) Neither A nor B is correct.
• D) Both A and B are correct.

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Definitions:

Business Operations

The activities and tasks companies engage in on a daily basis to increase value for the business and its stakeholders, encompassing production, sales, and administration.

Fixed Assets

Assets of a long-term nature such as buildings, machinery, and equipment that are used in the operations of a business.

Share Exchange

A transaction where shareholders agree to trade their shares for shares of another company, often used in acquisition deals.

Shareholder Group

A collection of individuals or institutions that own shares in a corporation, giving them partial ownership and possibly the right to vote on corporate matters.