Suppose that a special interest group makes up 2% of the population. If a policy transfers $600 to the special interest at a cost of $100,000 to society, will the special interest group lobby for this policy?
A) Yes, the benefits of $700 outweigh the costs of $42.
B) No, the benefits of $600 are less than the costs of $2,000.
C) They'll be indifferent since the benefits equal the costs.
D) No, the benefits of $600 are less than the costs of $100,000.
Correct Answer:
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