Politicians Have a Strong Incentive to Support Projects Even When

question 150

Multiple Choice

Politicians have a strong incentive to support projects even when their costs outweigh their benefits if:

• A) the costs are concentrated among a small group and the benefits are widely dispersed across taxpayers.
• B) the costs of the project are spread widely across taxpayers and the benefits are spread widely across taxpayers.
• C) all voters and taxpayers are perfectly informed.
• D) the costs of the project are spread widely across taxpayers and the benefits are concentrated on a small group.

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Definitions:

Typical

Characteristic of a particular person, group, situation, or thing; representing the usual or most common example.

Disinherited

The act of intentionally preventing someone from receiving inheritance or property from a will or estate.

Entire Estate

Refers to all the assets owned by an individual at the time of their death, including property, investments, and personal belongings.

Validity

Validity refers to the extent to which a concept, conclusion or measurement is well-founded and likely corresponds accurately to the real world.