Suppose that a special interest group makes up 0.5 percent 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 $600 outweigh the costs of $500.
B) No, the benefits of $30 are less than the costs of $100,000.
C) No, the benefits of $30 are less than the costs of $50,000
D) They'll be indifferent since the benefits equal the costs.

Question

Quizplus · Accepted Answer

The special interest group will lobby for this policy because the benefits of $600 outweigh the costs of $500 to them.

Suppose That a Special Interest Group Makes Up 0