The fact that trade policy often imposes harm on large numbers of people, and benefits only a few may be explained by
A) the lack of political involvement of the public.
B) the power of advertisement.
C) the problem of collective action.
D) the basic impossibility of the democratic system to reach a fair solution.
E) a cycle of political corruption.
C
You might also like to view...
In a Stackelberg game, a monopolist could deter entry from a potential rival by
A) telling the potential rival not to enter. B) strategically moving first. C) moving to a Bertrand model. D) None of the above.
Suppose that goods X and Y are substitutes and the price of good Y falls. We would then expect
A) the quantity of good Y demanded to increase and the demand for good X to increase also. B) an increase in the demand for good X and a decrease in the quantity of good Y demanded. C) an increase in the quantity demanded of good Y and a decrease in the demand for good X. D) an increase in the demand for both good X and good Y.