The special-interest effect is one that yields

A) private benefits equal to external benefits.
B) large external benefits compared to private benefits.
C) small economic losses to a small number of people and large economic losses to a large number of people.
D) large economic gains to a small number of people and small economic losses to a large number of people.

Special-Interest Effect

The impact or influence of special interest groups on policy-making processes, often aimed at obtaining favorable regulations or benefits for their members.

Economic Losses

The reduction in economic value due to factors such as poor investment decisions, natural disasters, or inadequate demand for goods and services.

Economic Gains

Increases in wealth or resources, often measured in terms of profit or improved well-being resulting from economic activities.