Legislators Often Have Difficulty Passing Legislation with Widespread Benefits, but That

question 22

Multiple Choice

Legislators often have difficulty passing legislation with widespread benefits, but that imposes concentrated costs because those who bear the costs will __________ the legislation, while those who would reap the benefits will __________ the legislation.

• A)protest; actively support
• B)not protest; not actively support
• C)not protest; actively support
• D)protest; not actively support
• E)protest; protest

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Definitions:

Bounded Rationality

The concept that decision-making is limited by the information available, the cognitive limitations of individuals, and the finite amount of time they have to make a decision.

Good Enough

A term that refers to a satisfactory solution or product that meets basic requirements without needing to be perfect.

Sunk Costs

Expenses that have been incurred and cannot be recovered, which should not influence future economic decisions.

Production

The process of creating goods or services using inputs like labor, capital, and raw materials.