Economics for Today 9th Edition by Irvin Tucker

Exercise 24

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 any one person, then those paying the costs have little incentive to organize opposition.
C) Both answers a. and b. are correct.
D) None of the answers above are correct