Use the Figure Below to Answer the Following Question(s)

question 170

Multiple Choice

Use the figure below to answer the following question(s) .
Figure 6-1
-Figure 6-1 illustrates the four possibilities of the distribution of costs and benefits among voters for a government project. Programs that give subsidies to a small group of producers at general taxpayer expense would be considered

• A) type A projects, and the government would be likely to undertake these projects if they were efficient and to reject them if they were inefficient.
• B) type B projects, and the government would be likely to undertake many of these projects even when they were counterproductive (inefficient).
• C) type C projects, and the government would be likely to fail to undertake many of these projects even when they were productive (efficient).
• D) type D projects, and the government would be likely to undertake these projects if they were efficient and to reject them if they were inefficient.

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Definitions:

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