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If a Special Interest Group Represents 10% of Society, and There

Question 101

Multiple Choice

If a special interest group represents 10% of society, and there is a proposed public policy that will cost society $1 million and benefit that special interest group $1 million, which of the following is the most likely outcome according to public choice theory?


A) The special interest group will not lobby for the proposed policy because the policy will cost the group more than it will benefit it.
B) The special interest group will lobby for the proposed policy because the policy will benefit the group more than it will cost it.
C) The special interest group will not be able to make any decision on the proposed policy because its benefits equal its costs.
D) This policy will never be passed because the total costs and benefits are the same.

Correct Answer:

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