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.

Question

Quizplus · Accepted Answer

Public choice theory suggests that government policy tends to benefit a narrow interest group when that interest group has a relatively large benefit to gain from the policy, and when the costs of the policy are spread out among the general population, and are a very small burden for any single person. In such cases, the narrow interest group has a strong incentive to lobby government, while the general population has little incentive to organize opposition. Therefore, both option A and B are correct.

According to Public Choice Theory, Why Might Government Policy Benefit