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When the Federal Government Becomes Heavily Involved in Programs That

Question 81

Multiple Choice

When the federal government becomes heavily involved in programs that favor well-organized business interest at the expense of others, the expected result is


A) more rapid economic growth, because programs of this type are generally productive.
B) a reduction in rent seeking activities because political decision-makers will want to promote smaller, innovative firms rather than large firms that are a major source of political contributions.
C) less innovation because political decision-makers will tend to favor older firms with a stronger record of providing political support rather than newer, innovative start-up firms.
D) a decline in the competitiveness of elections, because politicians will find it more difficult to raise campaign contributions.

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