QuestionMay 22, 2025

Which of the following concepts explains why governments get heavily involved in providing favors to well-organized groups at the expense of others? 1. special-interest effect II. rational ignorance effect III. rent-seeking II only I only I and II I, II, and III

Which of the following concepts explains why governments get heavily involved in providing favors to well-organized groups at the expense of others? 1. special-interest effect II. rational ignorance effect III. rent-seeking II only I only I and II I, II, and III
Which of the following concepts explains why governments get heavily involved in providing favors to well-organized groups at the expense of others? 1. special-interest effect II. rational ignorance effect III. rent-seeking II only I only I and II I, II, and III

Solution
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Answer

I and III Explanation The special-interest effect explains how well-organized groups can influence government decisions to gain benefits, often at the expense of broader public interests. Rent-seeking refers to efforts by individuals or groups to gain economic advantages through manipulation rather than productive activities. Rational ignorance suggests voters may remain uninformed about issues due to perceived low impact.

Explanation

The special-interest effect explains how well-organized groups can influence government decisions to gain benefits, often at the expense of broader public interests. Rent-seeking refers to efforts by individuals or groups to gain economic advantages through manipulation rather than productive activities. Rational ignorance suggests voters may remain uninformed about issues due to perceived low impact.
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