In Figure 28

question 128

Multiple Choice

In Figure 28.1, if the rate of output is 320 units,

• A) Social costs exceed private costs.
• B) There is government failure.
• C) Pollution costs are internalized.
• D) Output is less than the socially optimal level.

Analyze various strategies used by interest groups to influence government policy and their consequences.

Define and understand the role of issue networks in policy-making.

Describe Astroturf lobbying and differentiate it from genuine grassroots movements.

Explain pluralism and identify its characteristics and the critique regarding its democratic tendency.

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Definitions:

Capacity Utilization Rate

A metric used to measure the degree to which a firm or economy is operating at its full potential or maximum efficiency.

Investment

The action or process of allocating resources, usually money, in order to generate income or profit.

Inventory Computerization

The use of computer systems and software to manage and track product inventories in businesses.

Net Investment

The overall expense incurred on new capital assets, reduced by the depreciation value of the existing capital assets.