Which of the following is true?
a. The resources used by special-interest groups to persuade elected officials to create legislation to increase their wealth are productive to society because they increase real output.
b. The resources used by special-interest groups to persuade elected officials to create legislation to increase their wealth are unproductive to society because they do not increase real output, and usually end up reducing it.
c. Special-interest legislation created through rent-seeking activity usually creates widespread benefits for the rest of the society.
d. Special-interest legislation confers concentrated benefits on one group by imposing concentrated costs on another group.
b
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An increase in supply, with no change in demand, will lead to ______ _ in equilibrium quantity and ________ in equilibrium price.
A) an increase; an increase B) an increase; a decrease C) a decrease; an increase D) a decrease; a decrease
A tax wedge is ________
A) the difference between the tax rate on income and capital gains B) equal to the difference between what people earn before and after taxes are accounted for C) the size of the decrease in labor force participation when labor income is taxed D) the difference between the rate on Treasury securities and the income tax rate