The Diffusion of Costs and Concentration of Benefits

question 301

Multiple Choice

The diffusion of costs and concentration of benefits:
I. leads to rational ignorance on the part of voters.
II. is the formula to which the sugar quota owes its existence.
III. is a formula for reelection to political office.

• A) I only
• B) I and II only
• C) II and III only
• D) I, II, and III

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Definitions:

Supply Curve

A graphical representation of the relationship between the price of a good and the quantity of the good supplied.

Demand Curve

A graphical representation showing the inverse relationship between the price of a good or service and the quantity demanded by consumers.

Demand

The desire and ability of consumers to purchase goods and services at given price levels.

Economic Theory

A set of principles and models that explain how economies function and how economic agents interact.