According to public choice theory, why might government policy benefit only a narrow interest group?
a. If the benefits to the narrow interest group are relatively large, they have an incentive to invest a lot of money and effort in lobbying government.
b. If the costs of this policy are spread out among the general population, and are a very small burden for anyone person, then those paying the costs have little incentive to organize opposition.
c. Both a. and b. are correct.
d. None of the above is correct.
c
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If stock prices are expected to drop dramatically, then, other things equal, the demand for stocks will ________ and that of Treasury bills will ________
A) increase; increase B) increase; decrease C) decrease; decrease D) decrease; increase
Marginal utility diminishes more quickly:
a. the less durable the good is. b. the greater the number of consumers consuming the good. c. the shorter the time period between two successive consumptions. d. the greater the number of firms producing the good. e. the cheaper the good is.