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According to Economic Theory, It Is Often Rational for a Politician

Question 114

Multiple Choice

According to economic theory, it is often rational for a politician to support special interest groups at the expense of unorganized, widely dispersed groups (for example, taxpayers or consumers)


A) only when the gains that accrue to the special interest group exceed the costs imposed on other voters.
B) when nonspecial-interest voters are unconcerned or uninformed about the issue, and campaign funds are readily available from the special interest group.
C) only if the government action is socially efficient.
D) only if the government action will reduce the monopoly power of business or labor and, thereby, lead to an improvement in the general welfare of consumers.

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