Answer to Question 1
An ideal response will:
1. Describe public interest groups as groups that seek collective goods or to provide benefits for society as a whole.
2. Describe economic groups as groups that represent the interests of particular firms or businesses within an industry.
3. Provide one or more examples of actual public interest groups.
4. Provide one or more examples of actual economic groups, such as specific corporations or trade associations.
Answer to Question 2
An ideal response will:
1. Explain that the free rider problem occurs when individuals can receive the benefits of collective action without having to contribute to the effort. As a result, they have no incentive to participate.
2. Describe one way that an interest group can overcome this problem, such as by providing tangible incentives to members. These benefits can be reserved to those who contribute, thus creating an incentive for individuals to join the group.
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