Why Is It Important for Interest Groups to Offer Selective

question 65

Multiple Choice

Why is it important for interest groups to offer selective benefits?

• A) It is necessary to limit the extent of the free-rider problem.
• B) If they do not, people will join political parties instead.
• C) Selective benefits are the only way to measure the success of an interest group.
• D) If they do not, people will accuse the groups of being antidemocratic.
• E) Selective benefits allow interest groups to make the profits they need to continue operating.

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Definitions:

Depreciation

The method of spreading out the expense of a physical asset over its lifespan.

Capital Stock

The total amount of physical goods or financial assets that a company or country uses in producing goods or services.

Depreciation

The process through which assets lose value over time, often due to wear and tear or obsolescence.

Gross Investment

The total amount of money spent on new capital assets, before accounting for depreciation.