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According to Public Choice Theory, Why Might Government Policy Benefit

Question 48

Multiple Choice

According to public choice theory, why might government policy benefit only a narrow interest group?


A) If the benefits to the narrow interest group are relatively large, they have an incentive to invest a lot of money and effort in lobbying government.
B) If the costs of this policy are spread out among the general population, and are a very small burden for anyone person, then those paying the costs have little incentive to organize opposition.
C) Both a. and b. are correct.
D) None of the above is correct.

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