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Resources Employed to Persuade Government to Redistribute Income and Wealth

Question 113

Multiple Choice

Resources employed to persuade government to redistribute income and wealth to special interests are _____


A) unproductive, because they do nothing to increase total output and usually end up reducing it.
B) productive, as they are required to increase total output.
C) efficient, as the marginal cost of producing a unit exceeds the marginal benefit to society.
D) inefficient, because the distribution of resources among alternative uses does not match consumer taste.
E) unproductive, because they raise the price level in an economy.

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