The special-interest effect in government decision making is signiﬁcant because
A) it corrects instances of spillover costs and beneﬁts.
B) it can lead to programs with concentrated beneﬁts and diffuse costs.
C) capitalistic economies are based upon the pursuit of self-interest.
D) it allows us to avoid the collective-action problem.

Question

Quizplus · Accepted Answer

The special-interest effect occurs when small, organized interest groups are able to influence government decisions in their favor, resulting in programs or policies that have concentrated benefits for a few and diffuse costs for many. This can lead to inefficiencies and inequalities in government decision making. The other options provided do not accurately describe the special-interest effect.

The Special-Interest Effect in Government Decision Making Is Signiﬁcant Because