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:

Decision Management Rights

The authority to make strategic decisions within an organization, typically held by upper management or executives.

Budgeting Process

A structured approach to creating a plan for a company's financial resources, outlining expected revenues and expenditures.

Membership Approval

The process through which applicants are accepted as members of a group, organization, or club, often following specific criteria for admission.

Budgeted Amount

The estimated financial performance or financial position for a specific period based on expected revenues, expenses, assets, or liabilities.