Suppose That a Special Interest Group Makes Up 2% of the Population

Multiple Choice

Suppose that a special interest group makes up 2% of the population. If a policy transfers $600 to the special interest at a cost of $100,000 to society, will the special interest group lobby for this policy?

A) Yes, the benefits of $700 outweigh the costs of $42.
B) No, the benefits of $600 are less than the costs of $2,000.
C) They'll be indifferent since the benefits equal the costs.
D) No, the benefits of $600 are less than the costs of $100,000.