Why Has the Number of Interest Groups Gone Up Dramatically

question 30

Multiple Choice

Why has the number of interest groups gone up dramatically in the pasty 50 years?

• A) The courts have tried to stay out of political decisions, making lobbying Congress
• More important.
• B) The average income of most Americans has gone up faster than inflation, giving people more money to donate to interest groups.
• C) Money has become less important in politics due to the public funding of elections.
• D) The size of the federal government and the types of issues it has involved itself in has increased substantially.
• E) Congress has increased in size thus allowing for more lobbying opportunities.

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Definitions:

Variable Costs

Costs that change in proportion to the level of goods or services a company produces.

Sunk Costs

Costs that have already been incurred and cannot be recovered, and thus should not affect future economic decisions.

Average Fixed Cost

Is the fixed costs of production (costs that do not change with the level of output) divided by the quantity of output produced.

Marginal Cost

The cost associated with producing one additional unit of a product, which can vary depending on the level of production.