Government loan subsidies for mohair production illustrate

A) why special-interest effects are often characterized by concentrated benefits and diffuse costs.
B) why special-interest effects are often characterized by concentrated costs and diffuse benefits.
C) that larger groups carry greater political weight than smaller groups.
D) the moral hazard problem.

Government Loan Subsidies

Financial support from the government that reduces the cost of borrowing for certain individuals, businesses, or sectors.

Special-Interest Effects

The impact of policies or actions that benefit a small group at the expense of the general public, often due to lobbying or political influence.

Mohair Production

The process of producing yarn or fabric from the hair of the Angora goat.